DIA – Dow Industrials ETF (Last:328.86)

DIA on Friday slightly overshot an exceptionally clear and compelling Hidden Pivot target at 327.27 that has been in play since mid-November, then closed above it. This does not bode well for bears because of the stellar quality of the ABC pattern, which should have shown precise stopping power. Regardless, we hold a few March 26 300 puts purchased last week for 0.86 and will continue to offer puts short at a lower strike for at least as much as we paid. This would lock in a no-risk vertical bear spread, but it’ll take a 4-5 point pullback to get us filled.  Alternatively, a decisive push past 327.27 would put a 374.13 target (!!!) in play, presumably to be achieved via a continuation of the nearly vertical ascent begun from 182.10 a year ago. Here’s the chart. _______ UPDATE (Mar 16, 5:58 p.m.): Although the major indexes are still in a topping range in relation to some Hidden Pivot targets I’d drum-rolled for as long as months, the so-far tiny overshoots could continue to torment bears. Alternatively, the broad averages could blast sharply higher, trashing my targets and leaving no doubt about whether even crazier prices are coming. Concerning DIA, even though its relentless rally gives no hint of weakening, I am uncomfortable telling you, simply, that it’s bound for the wild blue yonder. To avoid such vagueness, here’s a plausible pattern with a 343.38 target that lies about 4.5% above. It provides an intermediate objective that is not quite as ambitious as the 374.13 target given above. Finally, let me show you again how microscopically the very-big-picture target at 327.40 (slightly modified from 327.27) has been exceeded. Here’s the chart. Investors looking for the return of sanity can only hope that it foreshadows the massive coronary that this overheated bull market so urgently needs.