Member-only content. Please Login or get a free trial of Rick's Picks to view.
COMMENTARY for Wednesday
TODAY'S ACTION for Wednesday
Rick's Picks for Wednesday
This chart, like so many other index charts, doesn’t seem to want to come down. There has been massive downside pressure being applied to the daily chart and price hasn’t even moved down 50%. If there are any surprises with the earnings reports there could be some fireworks and increased volatility. As you can see from the chart price is approaching support at the 34 level. I am using the round number as there are several support prices around this level on various charts. For price to start a retracement higher price would have to go through 35.52 and then it could rally in 1 point increments. The up numbers are based upon the current low and a short cycle move. The pressure indicator has entered an over extended area on the chart. (Ira)
The point ‘B’ of the pattern shown is about as sausage-like as it gets, having failed to take out the May 28 low at 881.50, but it may be overshadowed in this case by an overall symmetry that is too graceful to ignore. If the downtrend from the June 11 high plays out accordingly, we should look for the futures to bottom at 859.75 (or possibly at 869.75 if the one-off ‘A’ at 942.75 prevails). I won’t speculate as to what might happened when either or both of these targets is reached, but a failure to rebound would naturally be bearish for the longer term. Either number can be bottom-fished with a tight stop-loss, but it will be less risky to enter on the “camouflage” of a subtle reversal occurring near those pivots.
Gold is having trouble sustaining loft and may have to go lower to buy some R&R time. However, a pop today touching 936.40 would put bulls back in charge, since that would create a robust new impulse leg on the hourly chart (see inset). Upside potential thereafter would be to as high as 952.80 over the near term; otherwise, the downside targets given here previouslystill obtain: 899.00, and 895.50.
Member-only content. Please Login or get a free trial of Rick's Picks to view.
SIDE BETS for Wednesday
The same sausage-y pattern I’ve flagged in the E-Mini S&P projects to 8035 for this vehicle, or perhaps 7964 if any lower. I would rate these numerbs as high-confidence, since the Indoos spent the last two days turning the midpoint support into resistance.
The Dollar Index may feel like it’s revving for a push higher, but I have my doubts it will get very far, since the last two thrusts narrowly failed to get past some prior peaks. This isn’t the way frisky bulls act when they are ready to run.
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.
On Foundation of Lies, Recovery Is Impossible
by Rick Ackerman on July 8, 2009 12:01 am GMT · 3 comments
Gold continues to hang tough in the midst of oil’s nasty selloff. Although August crude has fallen more than 14%, from last Tuesday’s peak of $73.38, a Comex Gold futures contract expiring the same month lost just 2.5% of its value during the same period, falling from $947 to $924. The fact that gold has not plummeted in sympathy with oil strongly hints that it will be quite feisty when selling in the oil pits finally lets up. It was triggered by fears that the alleged global economic recovery is much weaker than had been thought. One might have expected investors to be prepared for this turn of events, but apparently » Read the full article