A 2929.00 rally target disseminated here a while back remains in force despite Wednesday’s plunge into an air pocket. The futures had climbed steadily overnight, only to give it all back and then some in less than an hour when health insurance stocks came under heavy selling pressure. The biggest of them, UnitedHealth Group, the second most heavily weighted stock in the Dow, plummeted 7% in a blink as Crazy Bernie talked up Medicare-for-All. Although he is certain to persist as an irritant, it’s unlikely to affect the broad averages for more than a few days, if that long.
Meanwhile, even though the 2929.00 target still looks like a lock-up, that doesn’t make it any easier to profit by trading with the uptrend. The chart shows how a lesser target at 2924.50 was missed by an inch, denying Rick’s Picks subscribers a chance to get short with risk tightly under control. Assuming the futures reverse and continue higher, it won’t be much easier to get long for the ride. Buy-and-hold positions are simply not possible when marginally higher daily peaks are separated by 20-point dives.