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COMMENTARY for Tuesday
TODAY'S ACTION for Tuesday
Rick's Picks for Tuesday
If 1021.50 is not exceeded to the upside overnight, you can bottom-fish with a 1012.50 bid, stop 1011.75. This is an enticing Hidden Pivot midpoint, but if it’s breached we should expect the futures to continue falling down to 1003.75, its ‘D’ sibling. ______ UPDATE (10:07 p.m.): The futures have rallied above 1021.50, a mildly bullish development that negates the trade as given, although not the pattern itself, which could still produce a higher midpoint worth buying.
The bearish impulse leg on the hourly chart formed by yesterday’s decline yields an enticing place to try bottom-fishing: a midpoint pivot at 945.70 (shown). That support should hold if the 978.00 rally target given here earlier is to retain its promise.
The bullish penetration of a midpoint resistance at 120^23 augurs more strength over the next 7-10 days to as high as 123^07. (The equivalent for the December contract is 121^30.) Secondary resistance at 122^11 can be shorted with a stop-loss as tight as four ticks. ______ UPDATE: The futures spiked to 122^17, stopping us out with a four-tick loss. The overshoot suggests still-higher prices lie in store.
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SIDE BETS for Tuesday
Let’s try once again to buy at a midpoint support, this time by bidding 17.06 for 400 shares, stop 16.97, day order. ______ UPDATE (1:15 p.m.): We bought the shares, but cancel the stop-loss, since this trade feels like it’s worth risking more than the implied $36 — especially with AKAM down by nearly 15% in the last three weeks. The low so far is 17.02, so AKAM could be bottoming.
UNG easily punched through a Hidden Pivot support at 10.79 noted here earlier and now appears bound for a minimum 9.89. If you’re looking for a tripwire to signal a bullish turn on the very lesser (i.e., one-minute) chart, use the gossamer look-to-the-left peak at 10.97.
This Just In... for Tuesday
I don’t usually pay much attention to trading volume, but as the accompanying chart makes clear, the tripling of JP Morgan’s price during the bear rally of 2009 has been accompanied by a precipitous drop in volume. It’s difficult to imagine how this could be other than ominous.
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.
Treasury Default Not So Unthinkable
by Rick Ackerman on September 1, 2009 12:49 am GMT · 11 comments
Although we can be certain Americans and their government owe far more than they will ever be able to repay, the question of how this debt eventually will be discharged is the economic conundrum of the day. Some think hyperinflation is the only way out, since it would allow debtors to repay all that they owe with worthless bank notes by then in copious supply. However, this is hardly a solution, since those on the receiving end – i.e. the lenders — would be ruined, as would the bond markets, banks and all other » Read the full article