What better proof that Hidden Pivots work than the existence of a trading group that steals and uses them religiously every day? These guys have been doing it for quite a while, but when they denied me access to their discussions recently, it was as though I’d shone a flashlight on a bunch of cockroaches, sending them scuddling into the greasy recesses of denial. Instead of copping to brazen copyright theft – or, heaven forbid, apologizing -- their first instinct was to find out who in the group had ratted them out. (Note to all of you: There are a probably a dozen in your room whom I need only ask politely to find out what the rest of you evidently would break the law to hide.) Ironically, one of them had lectured me about his “Christian value cores” [sic] when I booted him out of my own chat room long ago for a variety of reasons, one of them related to honesty. He apparently needs an Old Testament refresher – specifically, Exodus 20:15: “Thou shalt not steal”. Some of the regulars in this clandestine group have taken the Hidden Pivot seminar that I offer each month -- a six-hour course designed to free graduates from ever having to ask some “expert” what he thinks about the market or a certain stock. The proprietary methods of technical analysis that I teach are not rocket science, as anyone who has taken the course could tell you, but the specific techniques continue to evolve in enlightening and amazingly useful new ways. For instance, I have been emphasizing “camouflaged impulse legs” in the weekly tutorial sessions I hold for seminar grads during market hours every Wednesday. (Click here for a free demo.) Once you get the hang of spotting these subtle tell-tales, you’ll
Tuesday, February 3, 2009
NQ Mini-Nasdaq (1180.00)
– Posted in: Current Touts Free Rick's PicksMidpoint resistance at 1198.50 is all that impedes the futures between here and a Hidden Pivot rally target at 1210.50. Night owls: Entry with the trend could be effortless following a pullback from any minor peak occurring in the range 1199.50-1201.00. The accompanying chart shows, in summary detail, why these two numbers would nicely bracket a "camouflaged" A-B impulse leg of minor degree. _______ UPDATE: At the opening bell, the futures dove (so far) 20 points from an overnight high of 1198.75 -- a tick above the midpoint resistance I'd flagged. I regard the midpoint as having been unshortable, since it occurred in the pandemonium of the opening.
IBM (93.48)
– Posted in: Current Touts Free Rick's PicksBig Blue has pulled back sharply after peaking just above a key high at 94.67 recorded in early November. This suggests another strong rally lies ahead. With the goal of legging into a calendar spread, let's attempt to do the "buy" side first, bidding 2.15 for two April 100 calls (IBMDT). To come up with a price, I have extrapolated a target from an ABCD pattern in the calls themselves, not the underlying stock. _______ UPDATE: IBM took flight after having gone no lower than 90.16 in the opening minutes of the session. Because the April 100 calls traded no lower than 2.40, our order went unfilled. Cancel it for now.
April Gold (893.80)
– Posted in: Current Touts Free Rick's PicksThe futures are taking their sweet old time getting down to an 895 pivot we identified during yesterday's impromptu webinar. In lackluster action, the target has since migrated lower, to 893.60, a Hidden Pivot that you can bottom-fish with a stop-loss as tight as 892.90. If the stop gets hit, infer that a test of last Thursday's low, 875.70, awaits. _______ UPDATE: The stop was hit just before noon, so the 875.70 target is in play. Bulls would regain the upper hand, however, if they can push the futures above 900.70 by day's end.
E-Mini Dow (8002)
– Posted in: Current Touts Free Rick's PicksThe Mini-Dow was wafting gently higher Monday evening, presumably bound for a Hidden Pivot at 7987. The target is not recommended as a short because the top of the impulse leg is defined by a "sausage" B that failed to get past the obvious peak to the left of it (see chart). However, from an analytical standpoint, an easy move through 7987 would suggest the beginnings of a short-squeeze that could quickly push the Dow another 70-90 points. _______ UPDATE: The futures rallied, consolidating just above 7987 late in the session, then pushed 76 points higher, as anticipated, before selling off moderately into the close.
