ESU26 – September E-Mini S&P (Last:7626.00)

Switching to the September contract, the futures were on their way up to at least 7570 .75 when the closing bell ended a do-nothing week. This is all but guaranteed, given the way buyers fist-pumped through the midpoint Hidden Pivot on Thursday. The futures were little changed from the previous Friday’s close, although a gratuitous feint south on Wednesday made this vehicle worth trading.  Friday’s action featured one ‘mechanical’ buy signal at the red line, although we typically do them only at the green line (i.e., at x=7351.75). When the new week begins on Sunday afternoon, I recommend getting short for a scalp-trade at 7570.75, but only to subscribers who know how to reduce the entry risk to relative pocket change by using a ‘camouflage’ trigger. The technique is spelled out in detail in the $2500 Hidden Pivot course that I’ve made available free to subscribers. _______ UPDATE (Jun 14, 10:50 p.m.):  The prospect of Whirled Peas goosed stocks hard when they resumed trading this afternoon. The E-minis came within an inch of the 7570.75 target on the opening bar, then leaped above it after a shallow pullback. A second pullback from the new top at 7574.75 would have triggered a tight ‘camo’ short with (visual) TI= 5.25 points; the resulting loss would have been a relatively modest $260 per contract.  At the moment, the futures are in a runaway short-squeeze that has hit 7583.75 so far. It can be shorted nonetheless using a larger reverse trigger of 15.75 points. That is too wide and risky for my taste, although I would rate the trade no worse than an even bet to make money. Based on the so-far high at 7583.25, the short would come at 7567.25, with 50% to be covered at 7551.25. With index futures in an apparent wilding spree and Trump setting up for the Nobel Peace Prize, it’ll probably be easier and less risky at the moment to go with the flow rather than attempt to short a blowoff top being energized by the geopolitical equivalent of a cure for cancer. ______ UPDATE (June 16, 9:18 a.m.):  Buyers had no trouble surmounting the 7807 midpoint resistance of the pattern shown. This implies that the rally is all but certain to continue to at least D=8262.25 and that a ‘mechanical’ buy at the green line would be warranted if the futures pull back to it, however unlikely. Keep in mind that this is a continuous chart and that its target does not precisely match that of the September contract. Also, I have used a technically dubious one-off-low, although I still expect it to create tradeable stopping power near 8262.25. Any higher and we would need to shift ‘A’ down to the marquee low at 4832. That would produce an 8557.50 target.