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COMMENTARY for Tuesday
TODAY'S ACTION for Tuesday
Rick's Picks for Tuesday
Just one more turn of the screw — on the thumbs of shorts — should push the Indoos the remaining distance to the 9158 target drum-rolled here earlier. That number is a Hidden Pivot, but I am not recommending shorting there aggressively because its pedigree is not the finest. However, it should serve just fine as an indicator of more strength to come, since an easy move through the resistance, or better yet a close above it, would be quite bullish for the near term.
There’s a Hidden Pivot at 91.96 we can short that is equivalent to the rally target given in today’s forecast for the cash Dow. Its provenance is shown in the chart (inset), and I’d be surprised if we didn’t get a tradable pullback. Officially, we’ll buy two September 90 puts (DAVUL), stop 92.12, but you can change the order in any way that suits your style. I estimate that the puts will be trading for around 2.15, and you can use that number with a limit order to simplify things. If you do, however, you’ll need to make sure that your bid is not executed with the underlying stock trading above 91.96.
Gold popped a dime above a 959.90 rally target we were using, implying that the next thrust should carry to 966.50, the first minor Hidden Pivot resistance above it. Please note in the accompanying chart that just a smidgen more than that — specifically, 966.80 — would be needed to kick the buying spree into a higher gear. ______ UPDATE (11:15 a.m. EDT): Gold is getting whacked gratuitously today, with the August contract down more than $14. The actual low is 939.10, a precise midpoint support that if broken will imply more downside to as low as 932.90 over the near term.
The Dollar Index didn’t get much bounce yesterday, considering how close it came to breaching a major prior low. That’s bearish, but we’ll give DXY the benefit of the doubt if it can muster a thrust today above 79.30, a peak-let recorded June 20 on the way down. More convincing, however, would be a push by Wednesday exceeding the look-to-the-left high at 79.78 made on July 15.
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SIDE BETS for Tuesday
Google looks capable of reaching 453.32 on the next pop, or perhaps 458.63 if the stock exceeds that number by more than about 20 cents.
Any buying this morning should lift the futures to at least 14.115, but if that Hidden Pivot is exceeded by more than a few ticks, look for a second-wind surge to 14.175
Buyers will need to push the futures past 3.804 today to demonstrate their resolve. If they succeed without allowing a dip first below 3.721, a further rally to as high as 3.887 would become likely over the near term.
RIMM looks like it’s struggling to reach an 83.14 target, but a close above that Hidden Pivot’s associative midpoint at 77.77 should send it on its way.
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Junior Golds Offer ‘Ridiculous’ Leverage
by Rick Ackerman on July 28, 2009 12:01 am GMT · 9 comments
(Following is the fifth in a series of article on gold by Chuck Cohen, a financial consultant and investor based in New York City. At bottom are some specific stock recommendations.)
Very few Americans own gold in any form. Even though gold’s price has risen each year since 2001, about the only time we hear gold mentioned is in the ubiquitous “cash for gold” TV commercials. Don’t you wonder who has any gold or jewelry left to sell? The way it’s shunned, you might think gold causes swine flu or greenhouse emissions. It is most baffling to me to see our profligate nation diligently avoiding the most rewarding investment of » Read the full article