Thursday, July 9, 2009

Right now the Indu is trying to move higher. There is upside pressure being applied to the 60 min chart, so a short term intermediate rally could happen. The daily still has downside pressure. Look for some resiatance to move higher at ____. The daily still holds ____ as support with ____ as a short cycle target

The Mini did its tricks today. It first made the bulls happy and then the bears joined the party and danced for a while. Then came the double bottom on the 15 min. chart and the bulls jumped on the band wagon. A look at the chart will show that there is a price objective, P, at ___then another point at ___. From current highs price would have to go through ____ to start a retracement down with the first price objective at ____. The night session will give a clue as to what will happen in the morning along with some earnings reports. On the daily chart pressure is trying to turn up and apply positive movement to price.

The daily chart shows that GCU9 is working in a downward sloping channel. I am not a big fan of channels, but it does give a pretty good visual insight as to what we are looking at. With all of this downside price action there has been no major drop in the price of gold. There is still downside pressure being applied to the daily chart, but it is in an over extended area of the chart. Price found temporary support at the midpoint of the move at _____ and is now trying to reach D at ____. The 60in chart shows that price ws stopped at the target price, D, for the move down and has bounced off of that level. For price to start higher it would have to go through ____ and then the the first price objective would be ____. For price to restart the move down it would have to go through 903 and then the first price objective for that move would be____.

(The following commentary was written by Chuck Cohen, one of the smartest investors we know. After this three-part series ends on Monday, Chuck will be contributing to Rick's Picks on a regular basis, focusing in particular on opportunities in junior gold stocks. RA)   When choosing a home, a car or even a vacation, most of us will research and reflect for weeks.  We will gather material, discuss it with our friends and family, and eventually come to an informed decision. But when it comes to our finances we can be strangely nonchalant and careless.  Instead of applying the same thorough diligence to investments, we tend either to passively follow the opinions of the mainstream media or hand over our money to a mutual fund manager whose outlook may be just like the media's. During a major bull market, such as the one we had from 1982 to 2000, this might not be a concern.  A rising tide carries out all boats. But at a major turning point it becomes very costly, not just because our stocks might go down sharply, but also because we aren't set to take advantage of the next great opportunity. Looking back from our current perch we now know that few of the public media voices foresaw or warned of the dangers that were about to hammer the financial markets. Since most remain resolutely upbeat today, it's probable that they won't anticipate any unexpected new jolts. In spite of the spectacular stock boom of the 1990s and the housing mania of the 2000s, our once great nation is now in dire shape.  I believe that the next shock will slam into an already weakened and fragile structure, and the damage will be incalculable to those who are not prepared for it. This is my first article for Rick. My hope is