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COMMENTARY for Wednesday
TODAY'S ACTION for Wednesday
Rick's Picks for Wednesday
The 91.96 rally target given here yesterday still looks like a good place to try shorting, so we’ll use the same game plan, bidding for two September 90 puts (DAVUL), stop 92.12. They should be selling for around 2.15 if you want to use a limit order, but pull the bid if DIA exceeds the target. I have also plotted a hypothetical buying strategy that would apply if the Diamonds zig-zag their way down to a midpoint support early in Wednesday’s session.
The futures have struggled for two days to push above a 981.00 midpoint-pivot resistance, to little avail. If they can settle above it, however, or exceed it intraday by more than a point, that would imply more immediate upside potential over the near term to as high as 999.50. For bulls, trouble of at least a minor degree would begin with a print at 962.25.
Yesterday’s low fell a tick above the 50% retracement line relative to the July 13 bottom, but if the futures were to go still lower today they’d hit a theoretical support at 927.50 that equates to a 0.618 retracement. These numbers will probably serve as well as any Hidden Pivot that I can identify (one of which caught yesterday’s low fairly closely — i.e., within less than 1.00 point).
Yesterday’s outside day also created a bullish impulse leg on the hourly chart, hinting of more strength to come. Pivoteers might also notice that the rally has camouflaged strength, since it left intact a key high on the intraday charts recorded last Thursday.
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SIDE BETS for Wednesday
A midpoint Hidden Pivot support at 13.540 can serve as a minimum downside target, provided the point ‘C’ high of the pattern it’s associated with, 13.760, is not exceeded first.
This Just In... for Wednesday
Although I am quite skeptical of President Obama’s health care plan, I want to present his side of the argument in the best possible light so that you can decide for yourselves. To that end, I have provided a link below to an NPR interview with Maggie Mahar. Maggie is not only the best reporter I know — among the very few to have received a five-star rating from Forbes Media Guide – she is a long-time personal friend. (Her first story, freelanced to Barron’s, was the poison pill saga in which I was involved.) She is diligent, honest and meticulous in mustering her facts, and that is why I am recommending this interview with Terry Gross to all. Click here to access either the audio version or the transcript.
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.
Should They Risk Missing a Payment?
by Rick Ackerman on July 29, 2009 12:01 am GMT · 4 comments
You can see the fine hand of government at work in the homeowner rescue package that has been struggling to get off the ground since its inception last spring. The goal was to reduce foreclosures by lowering mortgage payments for homeowners who were struggling. But struggling how badly? For would-be lenders, that can be a tricky question to answer, and they are understandably reluctant to commit to the program without clear guidelines from the federal government. As it stands, some homeowners are being told » Read the full article