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COMMENTARY for Wednesday
TODAY'S ACTION for Wednesday
Rick's Picks for Wednesday
We’ve been playing cat-and-mouse with Silver Wheaton, trying to get long on weakness rather than on strength. Let’s bid 0.60 today for four September 10 calls (SLWIB), contingent on the stock trading 7.60 or higher. If SLW slips below that price lower the bid for the calls to 0.55 and leave it there for the rest of the day. Judging from the way the bids and offers have been mutating intraday, the calls seem to have a following. Seasoned traders undoubtedly covet the series because once Sep 10 calls are acquired, it’s possible to sell other call options short against them without taking much risk. The accompanying graph shows a potential bottoming formation for the Sep 10s near 0.60. It’s possible to buy and sell options using ABC target calculations just as we do with the underlying stock. FYI, the stock could fall to as low as 7.44 if it breaches a midpoint support at 7.66 that has held so far. _______ UPDATE (1:40 p.m.): SLW opened on a gap well away from our bid, having gone only a penny below the midpoint support. If we are to catch a ride on this stock, it may need to be by way of an intraday entry and “camouflaged” opportunity.
If the stock catches a breeze, it could get to 129.63by week’s end. That’s a Hidden Pivot, and its midpoint sibling at 123.92 has already been exceeded. More immediately, we can try bottom-fishing at 119.05, the target of a minor corrective pattern. Bid there for 200 shares, stop 118.96, raising the stop to 119.45 if the bounce we’re expecting materializes and hits 119.65. Minimum price objective: 119.90. ______ UPDATE: The stock lurched maniacally higher today and is currently up around $6. Looks like that 129.63 target will be reached sooner rather than later.
As a minimum downside target for the near term, let’s use the 873.20 Hidden Pivot shown in the chart. The point ‘B’ I’ve used is not ideal because it failed to take out the cluster of minor lows recorded a week ago, but the overall pattern has the kind of heft that gives it authority. If the futures overshoot the target by more than 3-4 ticks, expect the selling to continue down to 868.00, a Hidden Pivot that you could bottom-fish aggressively with an 868.10 bid and a stop-loss as tight as 1.10 points. Alternatively, if Gold heads higher, we can use 914.60 as a bullish trigger, since a print there would turn the 15-minute chart unambiguously positive. _______ UPDATE (1:45 p.m.) During Wednesday morning’s tutorial session we identified a minor rally target at 905.00, but it didn’t look like there was sufficient wattage to take the futures much higher, at least not today.
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INTRADAY TRADING NOTES for Wednesday
Here's an interesting note from one Ron Zuziak, biochemist, concerning a subscriber's recommendation of grapefruit seed extract for fortifying one's immune system: "Rick, as a biochemist I can attest to the efficacy of GSE . (grapefruit seed extract) It is great in combatting most bacteria and many viruses. It even is effective to a close strain cousin of anthrax, even though no direct testing on anthrax has been performed to the best of my knowledge. Don's dosage is a good dosage level. I also recommend adding Sambucol and Vitamin C (1000 mg 3x day) and Lysine (1000 mg-2x-3x day.) The later combination is a continued research effort by Dr. Rath, a protege of the famous Dr. Linus Pauling....
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Hidden Pivot Webinar & Tutorials
The next Hidden Pivot Webinar will be held on 6/30 - 7/1. This two-day event is designed to teach you the risk-averse trading strategies Rick has taken to his seminars around the world. Once you have learned his proprietary secrets, you will approach trading and investing with enough confidence to make your own decisions without having to rely on the advice of others. For more information, or to register, click here.
Pandemic Humor, and Some Tips…
by Rick Ackerman on April 29, 2009 12:01 am GMT · 17 comments
Gallows humor kept the Rick’s Picks chat room from slipping into coma yesterday as the stock market went into yet another soporific dirge. With swine flu metastasizing globally by the hour, there was talk of Black Plague, and also this revolting remedy, attributed to the late George Carlin: “The best way to get your kids immunized against almost everything is to go to India and order food off a street vendor, throw the food on the street, then feed it to your kids.” We much preferred the household remedy of another subscriber, Don C., who » Read the full article