September 16th, 2014
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Credit Card Noose Tightens in Deflation

by Rick Ackerman on September 30, 2009 12:10 am GMT · 9 comments

When B of A spokesman Lawrence DiRita turned up on the evening news not long ago to assure listeners that his employer was willing to work on a case-by-case basis with troubled customers, we decided to call his bluff.  Would DiRita, formerly a high-ranking official in the Defense Department, go to bat for the borrower whose “teaser” loan from the bank was about to shoot up overnight from 0% to 12.24%?  Everyone with a credit card has been offered such a loan at one time or another, and it was once possible to initiate one at rates varying from 0% to 4%, with no additional fee for the balance transfer. Not any longer, though.  Anyone unfortunate enough to have gotten caught with a large balance when the » Read the full article


TODAY'S ACTION for Wednesday

Looking for signs of a top…

by Rick Ackerman on September 30, 2009 1:16 am GMT

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Rick's Picks for Wednesday
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DXY – NYBOT Dollar Index (Last:77.06)

by Rick Ackerman on September 30, 2009 12:35 am GMT

The dollar’s recent low missed a Hidden Pivot target that I’d drum-rolled in my commentary by just 26 cents. I offered no target for the current DXY rally, but keep in mind that once it ends, I expect DXY to plummet all the way down to 72.93.  Moreover, DXY’s rally may just be getting started because the initial reversal off the 75.83 low (versus a 75.47 target) has had no problem generating bullish impulse legs on the hourly chart.  If true, this would mean gold will remain under pressure for a while — perhaps another 7-10 days. The good news is that it is already under pressure but still able to home in on $1000 nonetheless. If $1000 is cruising altitude, as would appear to be the case, that’s good news for long-term bulls.

GCZ09 – Comex December Gold (Last:1007.90)

by Rick Ackerman on September 30, 2009 12:45 am GMT

Considering that Gold has simply been loitering near $1000, chat-room interest in the stuff seems somewhat fevered.  Relative to my forecast for the dollar and U.S. Treasurys (see today’s touts), I see bullion remaining under pressure for perhaps another week or two before it advances on a long-standing Hidden Pivot target at 1074.50.  I’ll be ready to reconsider if the December futures start pumping out some bullish impulse legs on the hourly chart (or even a mere 1001.70 on the 5-minute bars) , but until that time, keep the 970.80 downside target in mind as a worst-case number for the near term. _______ UPDATE (1:21 p.m.): We lucked out during this morning’s weekly tutorial session when a “camouflage” entry opportunity at 1004.50 popped up unexpectedly, allowed us to get long almost risklessly.  The ‘D’ target of the minor pattern used to make entry was 1005.70, but, as is the usual practice with camouflage entries, longs were to hold onto at least a small portion of their original positions for potentially bigger thrills ahead.  [Note:  Recordings of more than 30 Wednesday sessions are available to all seminar grads. The seminar fee includes three months’ access to the recordings, but if you’ve used that up, please contact mikej165@gmail.com to  renew.)

USZ09 – December T-Bond Futures (Last:43.86)

by Rick Ackerman on September 30, 2009 12:54 am GMT

At yesterday’s peak, the futures were just a few ticks shy of a potentially important Hidden Pivot target at 121^31.  If it fails to contain the surge, however, look for another topping possibility at 122^22, a Hidden Pivot that you can short with a tight stop-loss. Switch to a 5-tick trailing stop on a pullback of  10 ticks, and use 121^24 as a minimum downside target.  A top of at least short-term significance is loosely corroborated by a 43.18 target for TBT that I disseminated in the chat room yesterday afternoon. ______ UPDATE: Both vehicles trashed their respective targets, stopping out anyone who attempted to go against the trend.

DIA – Diamonds (Last:96.22)

by Rick Ackerman on September 30, 2009 1:04 am GMT

We can use a midpoint support at 96.97 this morning to attempt bottom-fishing in this vehicle. Bid 1.55 for two October 97 calls (DAVJS), but stop yourself out if the stock trades under 96.89.  DIA would be signaling more weakness over the near term to as low as 95.58 if the stop is hit. _______ UPDATE (10:20 a.m.):  DIA was trading below the stop when the calls hit 1.55, but if you bought them anyway your loss on exit moments later would have been no worse than $12 per contract.  The 95.58 target is still valid.

$SIZ14 – December Silver (Last:18.655)

by Rick Ackerman on September 16, 2014 1:25 am GMT

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$SLW – Silver Wheaton (Last:23.02)

by Rick Ackerman on September 15, 2014 6:06 am GMT

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$GCZ14 – December Gold (Last:1234.20)

by Rick Ackerman on September 15, 2014 5:50 am GMT

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$+ESU14 – Sep E-Mini S&P (Last:1975.25)

by Rick Ackerman on September 15, 2014 4:07 am GMT

We’ll soon see whether bears have the guts, composure and good sense to let their profit run, since the futures have gotten within an inch of the 1972.00 correction target shown. As always, a decisive move through such a clear Hidden Pivot support would imply there is selling power remaining to be spent. In this case, however, the Sunday night Sleazeballs have opened the E-Minis with a 13-point air pocket that suggests they’re worried. That’s a pretty brazen heist, but it also reflect the reality that every point of it was needed to completely exhaust sellers ahead of an equally brazen run-up. The logical place to short this manipulation is near the 1984.75 midpoint pivot (p) shown. Night owls should use camouflage or a mechanical stop to accomplish this. The latter implies 5.00 points of entry risk, predicated on 15 points of downside potential.  For the record, I remain short this vehicle in my BlueFin account from near the all-time high, having stood pat during Thursday’s nasty short squeeze. _______ UPDATE (11:24 p.m. EDT): The corresponding target, basis the December contract, is 1962.50.  It will leave DaBoyz with a little more room if they need to take ‘er down a second time to dry up sellers ahead of another short squeeze.  The short noted above would therefore be from p=1977.00 _______ UPDATE (10:28 a.m.): If you shorted 1977.00 as I suggested, the trade would have produced a profit of as much as $375 per contract, since the futures dove 7.50 points from an opening-bar high this morning at 1978.00.  They are ratcheting higher at the moment, bears quite evidently lacking in guts, composure and good sense, but we at least came away with the best trade of the day so far.

$DJIA – Dow Industrial Average (Last:17025)

by Rick Ackerman on September 12, 2014 12:01 am GMT

When a stock or an index takes a wicked dive, it often occurs after the particular vehicle has marginally exceeded some prior, significant peak. ‘Everyone’ turns bullish on the breakout, including bears prepared to cover on a hair-trigger signal, and that sets up the haymaker. Notice in the accompanying chart, however, that the record high recorded by the Dow on September 4 has led to no such plunge.  The high exceeded July’s record peak by 10 points, and that should have been enough to get bulls’ — and bears’ — juices flowing.  Instead, we’ve seen only a moderate pullback since then, leaving bears very much on the hook.  We could still see a collapse from these levels, particularly if there is unsettling news. But for the time being, bears shouldn’t get their hopes too high. We are short the Diamonds via some out-of-the-money put options just in case, but we may have to reshort if DIA breaks out to new highs. (Note: This tout is being written before Thursday’s close, since I will be away from the office later today.)

$TLT – Lehman Bond ETF (Last:113.38)

by Rick Ackerman on September 11, 2014 1:29 am GMT

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$INX – S&P 500 (CME) (Last:1985.54)

by Rick Ackerman on September 9, 2014 1:19 am GMT

An alert chat-room denizen spotted the target shown, and it’s a jim-dandy.  Pivoteers will notice that the point ‘A’ low seems to be positioned in the middle of nowhere.  In fact, it is at 244, the low of the 1987 Crash. The remaining two coordinates are so clear as to leave little doubt about the importance of the resulting 2028.44 Hidden Pivot target. So far, the S&Ps have gotten as high as 2011.17 — close enough for us to infer that a MAJOR top may already be in.  If so, we are covered via DIA puts that I suggested buying and which are still attractive (see tout for details). As I noted in the chat room, it is inconceivable to me that the stock market will NOT make a top of at least tradable importance very near the target, so you should position accordingly. ______ UPDATE (Sep 9, 7:56 p.m.): There are more exchange vehicles tracking the S&P 500 that one can count, but depending on which you use, the Hidden Pivot target given above could be as low as 2018.04.  If so, that would mean that the so-far high at 2011.77 came even closer to fulfilling a price objective that had been  27 years in coming. Our trading bias should therefore be bearish, with wider-than-usual-stops for any short positions taken. See today’s E-Mini S&P tout if  you want a precise way to gauge the bear’s strength at any point in time. _______ UPDATE (September 15, 12:43 a.m. EDT): So far, so good — even if progress to the downside has been labored. The INX appears bound for the 1982.23 target of (on the hourly chart) A=2007.51 (9/5): B=1982.99 (9/10); C=1997.65 (9/11).  The current correction up to (and slightly past) the 1985.29 midpoint pivot is therefore short-able if via camouflage.

$+DIA – Dow Industrials ETF (Last:171.27)

by Rick Ackerman on September 5, 2014 3:58 am GMT

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$SNIPF – Snipp Interactive (Last:0.2562)

by Rick Ackerman on September 5, 2014 3:05 am GMT

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.

$+TSLA – Tesla Motors (Last:279.20)

by Rick Ackerman on September 3, 2014 5:30 am GMT

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.

+GDXJ – Junior Gold Miner ETF (Last:37.51)

by Rick Ackerman on September 2, 2014 12:03 am GMT

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SIDE BETS for Wednesday

SIZ09 – December Silver (Last: 16.200)

by Rick Ackerman on September 30, 2009 1:09 am GMT

The futures appear to be struggling too hard to get past a relatively modest resistance at 16.410 made last Friday on the way down.  Such a thrust would create a bullish impulse leg on the lesser charts, but if it doesn’t happen, look for further consolidation over the near term to as a low as 15.680.


Hidden Pivot Webinar & Tutorials
The Hidden Pivot Webinar is one-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. The next Webinar will take place on October 16, 2014. For more information, or to register, click here.