In the Trading Room Thursday night, I left a note for ‘Nick the Greek’, an erstwhile shipping tycoon who is able to trade when most of us are sleeping. He’d made a nice score earlier in the day by shorting ES at a 7755.50 target I’d advertised that caught the exact-to-the-tick top of a 32-point plunge. “If the nasty little sonofabitch breaks out again,” I texted at 9:28 p.m., “it’ll be going to 7769.25. That is a Hidden Pivot resistance that the clowns and algos will not likely know about. I know you prefer 25-point stops for shorting ES, but don’t give this gambit more than 10 points.” Well, ES did whipsaw higher after faking weakness on the opening, trampolining to what I’d reckoned would be a perfect place to get short, 7769.25. Except that it kept on going — but only high enough to shame my 10-point stop-loss. The futures then continued higher, peaking minutes later at 7782.50, a measly 3.25 points above the implied stop I’d told Nick to use; then they fell 70 points so quickly that there was no chance to get aboard belatedly. Sorry about that, Nick. But as I keep telling you, you’re on the right track shorting every rally in…whatever. That’s what the sleazeballs who run this carny midway have been doing, distributing stock at every opportunity in preparation for the inevitable Big One. In the meantime, I will post a link in the chat room to an annotated version of the thumbnail chart, since it contains tradeable information I’d prefer not to divulge on this page.
ESU26 – September E-Mini S&P (Last:7724.00)