Pivoteers may have noticed that today’s sell-off tripped a ‘counterintuitive’ short at the green line (2692.00). At least one bold subscriber had staked out a position in advance based on my earlier note that the Dow looked as though it was fixing to lay an egg when stocks opened Sunday night. As indeed it did. Even though the subscriber said he’d cashed out his DIA put position for a quick $7500 profit, it would appear that holding a few puts for a swing at the fences could conceivably produce some additional gains. In any event, based on the CI trade signal, we should expect the weakness to continue down to at least p=2645.75 in the days ahead. If you prefer to trade against the swings, you could try bottom-fishing there with a ‘camouflage’ set-up. I’d suggest using an abc reversal pattern on the 5-minute chart or less, if and when the E-Minis get within 2-3 points of p.
