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COMMENTARY for Friday
TODAY'S ACTION for Friday
Rick's Picks for Friday
Close but no cigar. Goldman opened on a short-squeeze gap that came within 74 cents of our target — not close enough to get us short using the strategy that was recommended. We’ll set the trade aside, but I should mention that anyone who was long coming in yesterday might have used what I call a “dynamic trailing stop,” keeping risk and reward in a 1:3 ratio at all times. This means that when the stock came within 74 cents of the target, an implied trailing equal to a third of that, or 25 cents, would have been in effect. I read it as moderately bearish that Goldman fell so hard without having achieved the target. Since the stock is a key bellwether for the market as a whole, we’ll need to monitor its further progress/regress closely.
The 1074.50 target kept our confidence from wavering when gold recently came under (futile) attack. I still expect sufficient resistance at that price to warrant a position adjustment by long-term investors. A tradable pullback seems highly likely, and even if it is not a big one, odds are good that you will be able to replace any stock exited with shares acquired at a lower price. If the futures trash the target, however — and by “trash,” I mean close above it the day they first hit it — that would indicate they are gunning for a major Hidden Pivot at 1134.50 identified here yesterday.
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SIDE BETS for Friday
Just a reminder that we have a score to settle with Google if and when it gets to a 553.87 target flagged here a while back. We’ll almost surely use a camouflage entry to avoid pain and risk to the extent possible, so stay tuned.
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.
Deflation Overwhelms Niggling Price Hikes
by Rick Ackerman on October 9, 2009 2:17 am GMT · 32 comments
We’ve had a rollicking good time in the Rick’s Picks forum lately as inflationists sought to rise to the level of debate in explaining why deflation is unlikely. You can judge for yourself how well they succeeded by clicking here, but on our scorecard, at least, they didn’t win a round. How could they have when they are evidently blind to evidence that the global engine is perilously close to being suffocated by deflation? As always, there were quite a few beleaguered consumers ready to testify that they are getting hammered by rising grocery prices. One of them is a friend of ours who lives in an L.A.-area home that has lost a third of » Read the full article