The September futures on Friday spasmed to within an inch of a 4413.75 rally target that has served as our lodestone since mid-May. This promising Hidden Pivot helped keep our trading bias aligned with the uptrend. It also mitigated hubris whenever we attempted to get short at lesser resistances proffered like canapes by technically oriented subscribers in the chat room. As I noted earlier, there is a question about how well a target so obvious can work, especially since the algos and droolers seem to have developed an addiction to the same ABCD patterns that had long buttered our bread. On the other hand, the target is sufficiently clear and compelling as to nearly preclude the possibility that the futures will simply blow past it. Under the circumstances, we will almost certainly see a shorting opportunity very near ‘D’, but we’ll have to discover its precise location and exploit it with risk tightly controlled after things get rolling again Sunday night. Stay tuned to the Trading Room if you care. _____ UPDATE (Jul 27, 12:37 p.m.): Several trades were in fact offered up in the Trading room, including an after-hours winner that could have netted you about $850 in an hour. Check it out! ______ UPDATE (Jul 27, 12:25 p.m.): The futures have been bludgeoned down to 4368.00 this morning after having traded just three points above the 4313.75 target I’d been drum-rolling for weeks. Numerous subscribers reported taking profits on the short trade detailed above, and at least one subscriber remains short a few for a swing at the fences. I still think a major top is in. _____ UPDATE (Jul 27, 9:03 p.m.): We’ve used the 4413.75 to good advantage recently with several bear trades that could have been worth as much as several thousand dollars to those who followed my detailed instructions. (Check out today’s thread to see whether you could have done so.) I still like 4413.75 as a place for a major top to occur, although I’ve acknowledged all along that there are probably too many others watching it for it to work precisely. What do we care, as long as we can continue to exploit it profitably? In any event, bears are truly freaked, and this all but guarantees that the stock market will tank only when the last of them has been carried out in a body bag. Look for nerve-fraying action at or below 4413.75 to continue, and for a possible blow-off above the Hidden Pivot if that’s what it takes to gut the last short. I will continue to signal opportunities in the chat room in any event, including a confidence rating if it seems warranted. Here’s a chart that shows the E-Minis extremely reluctant to do the right thing by collapsing. As I’ve just implied, this is all but certain to occur in such a way that it will be nearly impossible to get short at the exact top. _____ UPDATE (Jul 29, 3:52 p.m.): Bulls have been at it for a week, unable to bust through major resistance at D=4413,75. Since they are gutless, feeble and Fed-dependent in their natural state, they must be waiting to take advantage of the ‘Friday factor’ to induce a short squeeze on the one day of the week on which it is most likely to succeed. If they don’t, I’d suggest taking home a couple of puts over the weekend.
ESU21 – Sep E-Mini S&P (Last:4412.00)