Your Editor Is Taking a Breather

My outlook is still bullish, with a 593.73 target in play that was introduced here last week. This chart offers a different view, however — one that suggests the stock would become an opportune buy when the correction comes down to p=493.67, the midpoint Hidden Pivot of a pattern I’ve cloaked for proprietary reasons.  You should use a trigger interval taken from the hourly to initiate the trade, but it cannot be calculated accurately until the stock is close to p. As of now, it looks like $2.08 TI should do the trick, but a more timely calculation could help to reduce that number. As always, a decisive breach of the midpoint support would shorten the odds of more slippage to the ‘d’ target — in this case 431.89.

The reverse pattern shown stops short of greenlighting a rally into the void, although it says that a move to at least d=39.865 is practically certain.  Move the point ‘A’ to a visually more obvious place, one low to the left, and it projects a higher ‘D’ target at 40.605.  I am not skeptical that it will be reached, but I’ll be curious to see how such an obvious pattern screws with bulls’ heads. Our short-term trading bias will remain bullish in any case, but I’d suggest negotiating your entries at p or d pivots of rABC patterns on the hourly chart or less.

Careful!  GDXJ’s behavior has been feral the whole way up, albeit with no big surprises. Now it is closing on a 78.28 target that has been three months in coming. That implies the target, a Hidden Pivot, should show tradable stopping power, even if the blunt obviousness of the pattern will likely work against a top occurring precisely where it ought to. If you’ve held onto a long position all the way up and want to keep it, or part of it, consider writing some near-the-money calls with an expiration date no more than 2-3 weeks out.