In the list of touts, I am substituting this vehicle for the E-Mini S&Ps because there appears to be almost no interest in the latter in the chat room. The chart shows a very slight overshoot of a D target at 255.15. Given the perfect clarity of the pattern, even a two-tick overshoot is bullish and implies DIA is bound for the target of an even larger ABC. That would be this one, with a 258.73 objective. We will trade this vehicle differently from the E-Mini futures, with a nearly 100% emphasis on option trades, since they are the only ones that seem to get noticed in the chat room. A ‘conventional’ buy signal has been tripped, as implied above, but we’ll wait for a mechanical signal before I suggest jumping on board via the purchase of call options. _______ UPDATE (August 3, 12:46 a.m.): There’s too much bravado in the FAANG stocks at the moment, so let’s plan on fading a go-along rally in this vehicle. Specifically, I’ll suggest buying two August 10 254 puts if the underlying gets within 0.05 of the 254.06 target shown in this chart. I estimate the options will be trading for around 1.15-1.20 if the target is reached toward the end of the session. This is a highly speculative bet, since we’ll be getting in the path of a speeding freight train, so don’t bet the ranch._______ UPDATE (August 3, 1:04 p.m.): As expected, DIA has rallied to a so-far high at 254.12, allowing subscribers to buy puts — as reported in the chat room — for 1.17-1.21. For now, I will track two @1.21. Stop yourself out if they trade for less than 1.00.
