Tuesday, September 22, 2009

The Dollar Index is giving off mixed signals, consolidating just below a midpoint pivot after creating a strongly bullish impulse leg yesterday on the hourly chart. If the retracement goes lower than the 'd' target at  76.33, the whole bullish enterprise would become suspect, notwithstanding the dog-and-pony show slated in Pittsburgh this week. -

The futures failed to reach a targeted pullback low at 993.00 yesterday, suggesting that  the bounce off the actual low at 996.30 is likely to reach its 'D' target, ______.  The futures appeared to be corroboraating this scenario Monday night by pushing above the uptrend's midpoint pivot.

The futures have the potential to hit _____ on the next thrust - a target that has been corroborated by the stall within two ticks of its sibling midpoint 120^11.  The best way to board would be to use a camouflage 'B' that is recorded somewhere between 120^14 and 102^16.The opportunity could come and go quickly, so you'll need to be ready.

Putting aside the two targets in the stratosphere that I flagged here yesterday, there's a minor corrective one at 1052.25 that you could use for bottom-fishing with a stop-loss as tight as two ticks. Please note that it would take a print today at 1047.50 to turn the hourly chat bearish. ______ UPDATE (1061.25):  The stop-loss would need to have been at least four ticks, since the actual low occured at 1051.50. The subsequent bounce points to _____, subject to midpoint resistance at 1063.00, but neither number looks like it will be worth much for tradng purposes.

   [Rick has been under the weather with a possible case of food poisoning. Filling in for him today is Chuck Cohen, a financial consultant whose work will be familiar to many of you. The following appeared at LeMetropole.com over the weekend. Chuck thinks that as long as the news media continue to stumble around in the dark in their coverage of the gold world, we should remain confident about accumulating more bullion and precious metal shares for the long haul. RA] It took a mix of $1000 gold, the media's reaction to it, and a very fallow day to compose this piece. As serious as the news is these days, it is still difficult not to see the absurdity in what is unfolding. Now that gold has finally pierced $1000, I had expected to find repentance and mea culpas by a news media that has persistently resisted and even mocked the gold bugs for nearly a decade. But if the news over the weekend is an indication, gold might need to hit $5000 before the media finally head to the confession booth.  But that's great news, as far as I’m concerned. As we know by now, the less company we keep, especially from the mainstream, the better.   Consider the following, penetrating insights into gold that I found over the weekend. (And if the media are puzzled by why they have lost almost all credibility and readership, according to the latest Pew Research survey, then they should read these articles.  For This We Buy Barron’s? This weekend's featured article in Barron’s, by a Ms. Jacqueline Doherty (although I am suspicious that this might be merely a nom de plume of Jon Nadler, the Scarlet Pimpernel of the gold world), who concludes prophetically that "after a likely pullback of 10-20%, or