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COMMENTARY for Sunday
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.
Are U.S. Stocks and Gold About to Go Ballistic?
by Rick Ackerman on October 11, 2009 10:34 pm GMT · 8 comments
Are U.S. stocks and gold about to scream higher? Our good friend Chuck Cohen, a NYC-based financial consultant specializing in gold shares, thinks so. Although Chuck’s outlook is more dramatic than our own, we find his arguments quite plausible. Here he is, a bear turned unapologetically bullish, with some advice for investors — especially those who have been dithering over taking the plunge in mining stocks:
Since I have felt that the markets of the world are at a very important junction, I wanted to put out my revised views that connect with the near-term price of gold. With the stock market’s powerful, seven-month-old recovery closing on DOW 10,000, and gold bursting through $1000, many investors are anxiously wondering what’s next. Most seem to be very wary. I was a bear myself until a few weeks ago but recently reversed this stance. Yes, I know, there’s nothing more bearish than when bears start turning bullish. And I am » Read the full article