DIA – Dow Industrials ETF (Last:310.50)

The pattern shown looks like a winner no matter what your purpose. Most immediately, there is the prospect of a juicy ‘mechanical’ buy if DIA pulls back to x from our ‘sweet spot’ just above the red line. We cannot yet be confident that D=327.27 will be reached, but it would be solidly in play if buyers push this gas-bag easily past p=308.23, For the time being, that midpoint pivot can serve as our minimum upside objective.  It is a surprise that DIA, QQQ and IWM, if not yet the E-Mini S&PS, have all exceeded what looked like robust Hidden Pivot resistances. It’s still possible stocks will fall coming out of the gate Sunday night, but the evidence so far suggests that buying power remains at psychotic levels, seemingly inexhaustible. For now, we’ll do nothing to augment a small speculative position in out-of-the-money puts. ______ UPDATE (Jan 7, 10:44 p.m. EST): Bulls are steaming toward the  327.27 target at full speed, but you should use p2=317.75 for the time being as a minimum upside target so that we don’t get too far ahead of ourselves with easy assumptions.