It’s a crazy world that views dollars and Treasury paper, of all things, as a safe haven whenever the financial news turns unsettling. Yesterday’s upsetting story had sales of existing homes falling by 2.7% last month, darkening the mirage of recovery in the housing sector. Home sales had risen over the four previous months, but the distress buying that was driving this statistic appears to be drying up. Skittish traders lost no time connecting the dots, dumping gold and piling into dollar assets. They evidently had » Read the full article
Yesterday’s inebriated swan dive came within two ticks of a two-day downtrend’s Day-Glo target (1040.50) on the hourly chart. The futures should go no lower than that Hidden Pivot if bulls are to maintain the appearance of being in charge. However, if they do breach the support decisively, I’d put pivotry aside and use the 1025.50 low from August 13 as a minimum downside objective. Alternatively, a print at 1050.00 Thursday night or early Friday morning would turn the one-minute chart bullish. ______ UPDATE (11:40 a.m.): The day so far has been spent playing Hidden Pivot toe-sies, with a high at 1049.50 and a low at 1039.75. Don’t expect much more today.
The corrective rally Thursday night promised to deliver no more than 1000.10 — and that was only if the Hidden Pivot’s midpoint sibling at 997.30 is exceeded. Promises sometimes get broken, though, and we should take it as a bullish sign if it happens here. However, it would take nothing less than 1009.40 to turn the lesser intraday charts decisively bullish. If we study Thursday’s tumult from the top of the 5-minute chart on down, we find a Hidden Pivot at 976.10 that can serve as a worst-case target for the near term. And as always, price action at the (988.80) midpoint pivot will tell us whether our coordinates are the right ones. _______ UPDATE (11:44 a.m.): The futures have closely followed our script, topping in the wee hours at 1000.50, four ticks above where predicted. The subsequent breach to the downside of the 988.80 support is a bearish sign for the near term, but it would be counteracted by a print at 1001.70.
Applying Lindsay’s rules straightforwardly, December Silver is entitled to a pullback into the range 15.120-16.645 before it embarks on another leg up. The resumption of the bullish trend would be signaled by a booster-stage rally of at least $1.05 starting from anywhere within the given range. The potential for the move, measured from the low, would be $2.16
I first touted Snipp Interactive back in January, when it was trading around 0.15. Although the stock subsequently fell to a dime, it has since rallied sharply, settling at 0.2562 yesterday. This is one of my favorite stocks, and I came away from a conference call with its CEO, Atul Sabharwal, eager to sing their praises. During that call, I hit Atul with my best idea, a sweepstakes-type promotion, but he was already three steps ahead of me, able to cite, for one, New York State’s rules and costs for exactly the type of marketing scheme I’d suggested.
Full disclosure: I hold 100,000 shares plus warrants to purchase another 50,000 shares. But I hope that won’t discourage you from performing your own due diligence, since you are likely to be as impressed as I was when you find out what the company has been up to. For me, at least, Snipp (OTC: SNIPF) perfectly satisfies Peter Lynch’s rule that investors favor companies whose strengths and methods they can understand. Snipp does interactive marketing that allows clients to track results in real time. The results have been sufficiently impressive that the company has been attracting blue chip clients with little difficulty. Read more about SNIPP by clicking here.
From a technical standpoint, although the stock’s chart history is thin, it’s possible to project a near-term rally target of 0.2730. A tenet of Hidden Pivot analysis is that an easy move through such targeted resistance implies there is unspent buying power percolating beneath the surface. This is not a “hot tip;” indeed, Snipp’s story does not lend itself to the kind of hubris that will result in a $10 billion IPO. But it is an aggressive and imaginative pioneer in a rapidly developing niche, and its CEO has the kind of imagination, intelligence and energy that inspires confidence.
Tesla’s strong rally has turned the Oct 3/Sep 5 calendar spread into a solid winner. The spread is currently trading on a bid/asked of 4.50/5.07. This means subscribers who bought the spread for as little as $1.00 last week could have quintupled their stake. The most paid for it would have been about 1.54. In any case, I’ll suggest offering half of the eight spreads to close today for 4.70. We’ll plan on rolling what’s left on Friday by covering (buying) back the September 5 300 calls we’re short and shorting the Sep 12 300 calls at the same time. ______ UPDATE (10:40 p.m. EDT): The stock’s push to an intraday high at 291.42 made the spread an easy sale for $5.00+, so I’ll consider the order filled. Now, roll the four spreads that remain into the October 3 /September 12 calendar as detailed above. _______ UPDATE (Sep 7, 10:31 p.m.): The midway price on the spread intraday was 2.30. Imputing the premium to the four October 3/September 12 calendar spreads we now hold would zero out the initial cost of 1.54 and add 0.76 to the real-time value of the spread. We’ll plan on rolling the spread again on Friday by selling the September 19/September 12 call spread (and thereby covering the short Sep 12 300s), but for now do nothing further. _______ UPDATE (Sep 15, 12:54 a.m.): I’ll use a 0.37 price, midway between the intraday high and low, as the spread price unless I hear from someone in the chat room who did better or worse. Imputing this new premium income to our Nov 22 / Sep 20 spread gives us a CREDIT cost basis of 1.13, for a guaranteed minimum profit on the position of $452. That would be in addition to whatever the Nov 22 calls fetch when we exit them.
Goldman’s clawback propensity yesterday was fearsome, especially when you consider how very badly the stock needs to correct a 15-day run. If it pokes its greasy little snout above 185.60 today, bears had better be prepared to throw in the towel.
Relief may be near in the form of a Hidden Pivot support at 389.22, but it would be bearish, at least for the short term, if that number fails to hold.