Bears struggled unsuccessfully to push stocks lower Friday following a weak opening, implying DaBoyz will have things well under control when trading resumes Sunday evening. Accordingly, I’ll recommend using a ‘mechanical’ bid to bottom-fish at p=3158.25, stop 3080.00. This implies entry risk of $3900 per contract, so the trade is recommended only to those who can cut the risk by at least 85% using a ‘camouflage’ set-up. If you’re new to mechanical trades, try paper-trading this one to help build your confidence. Our winning streak for these set-ups is probably at around ten now. The ultimate destination is an absurdly bullish Hidden Pivot at 3392.75 that has been in play since mid-June, but which became even more likely two weeks ago when buyers crushed p=3158.25. _______ UPDATE (Jul 27, 5:03 p.m. ET): Even with headline help from a Fed worried about a deep economic relapse, bears were unable to push the futures down an inch, let alone to the 3158.25 midpoint support where we’d hoped to do some bottom-fishing. The 3392.75 rally target remains viable, although bulls have shown little energy or eagerness themselves to get there. _______ UPDATE (Jul 29, 6:26 p.m.): Steady distribution has been quiet but palpable, which is to say: sneaky. Even so, bears have been too intimidated to act, making it painful to hold short positions ahead of the inevitable plunge. Sunday night is the most logical time for one to begin, and so we’ll look to take home a few puts on Friday. It will require news to trigger the selloff, but one shudders to think about what the news might be in these already way-too-interesting times. _______ UPDATE (Jul 30, 2:50 p.m.): With news out that GDP fell an annualized 34.5% in Q2 and no relief in sight for the pandemic-stricken economy, it’s no wonder why sellers couldn’t turn the tide. Just think of all the monetary stimulus these grim numbers will coax forth. More free money for Wall Street! Yippeee!
