September 3rd, 2010
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COMMENTARY for Friday

Economy Red-Hot — If You’re a Bank

by Rick Ackerman on October 30, 2009 1:28 am GMT · 11 comments

The Guvvamint plastered a 3.5 percent GDP growth rate on the marquee yesterday, and traders acted as though the information had come from Walter Cronkite himself. We always expect the stock market to wet its pants when these dog-and-pony shows turn up the wow factor with “Sabre Dance” and a laser show. But did the bond markets have to go nuts as well?  We would have thought they had better sense. It’s one thing for whacky » Read the full article


TODAY'S ACTION for Friday

A Gutless Dollar Rally So Far

by Rick Ackerman on October 30, 2009 3:30 am GMT

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Rick's Picks for Friday
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GS – Goldman Sachs (Last:178.47)

by Rick Ackerman on October 30, 2009 1:46 am GMT

The most you could say about yesterday’s rally was that it came off a low that fell a tad shy of a 170.37 target shown in the chart. But to confirm this as a bullish sign, the stock would need to create a bullish impulse leg on the hourly chart — a relatively modest feat that will require a print today or tomorrow above 182.45.

AKAM – Akamai Technologies (Last:22.45)

by Rick Ackerman on October 30, 2009 2:02 am GMT

After exiting half of our remaining position  at 22.45, we hold a round lot whose costs basis has been reduced by profit-taking to 11.01. Let’s continue to have fun with this one, shorting one November 24 call (UMUKZ) for 1.05 or better, good-till-canceled. The offer is based on a 24.47 rally target being reached by Monday or Tuesday. I’ve included a snapshot of an option calculator that shows how fair value for the calls was determined. ______ UPDATECancel the order for now, since AKAM hasn’t shown enough moxie lately to reach the target.

ESZ09 – E-Mini S&P (Last:1061)

by Rick Ackerman on October 30, 2009 2:20 am GMT

The rally may have looked impressive, but from a Hidden Pivot perspective it only just qualified as an impulse leg on the hourly chart, having exceeded the requisite one internal peak and one external.  The short k-A segment means the shallow pullback off the intraday high is a legit B-C leg, at least in theory, but there’s limited value in projecting a target that would be based on a continuation of yesterday’s probably unsustainable trajectory. Anyone looking to get long yesterday needn’t have looked for camouflage, since, on the 15-minute chart, there were no false entry signals the entire way up. That’s typical for all strongly trending days, and if you simply take every ‘X’ entry on the way up, it’s hard to lose..

GCZ09 – Comex December Gold (Last:1045.40)

by Rick Ackerman on October 30, 2009 2:40 am GMT

Going strictly by-the-book, the futures would need to pull back to at least 1040.00 to be recharged for another blistering leg up. Thereafter, it would take a booster rally of 5.40 points to put the December contract on course for a shot to as high as 1061.50. Prospectively, and camouflage aside, the most attractive buying opportunity I could see over the next few days would arise from a pattern that traces out a path similar to the one shown in the chart.

DXY – NYBOT Dollar Index (Last:75.96)

by Rick Ackerman on October 30, 2009 3:08 am GMT

Hold the applause, you dollar fans, since DXY has failed on two  consecutive days to turn its presumptive dead-cat bounce into a genuine impulse leg on the daily chart. I’ve labeled the two peaks that the dollar should have exceeded if there is more than hot air driving it. We won’t write it off yet, but the evidence is mounting that the bullish action, deep down, is gutless. Major trend reversals do NOT often begin with this kind of fumbling around.

$+SLW – Silver Wheaton (Last:22.06)

by Rick Ackerman on August 27, 2010 9:07 am GMT

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This Just In... for Friday

Why are we in Afghanistan?

by Rick Ackerman on October 30, 2009 12:01 am GMT

The resignation of Matthew Hoh, a key U.S. official  in Afghanistan, is a body blow to U.S. foreign policy. Click here to read his resignation letter, which questions our mission at the deepest possible level.

Credit and Deflation

by Rick Ackerman on October 30, 2009 6:42 am GMT

I’ve often suggested tuning out money-supply definitions of inflation and focusing instead on credit, which has been collapsing.  Thus far, however, the collapse has been more than offset by the Federal Government’s expansion of the money supply, according to Frank Shostak, an economist whose work we have featured here before.  In a recent article written for Mises Institute, Shostak explains how deflation could arise from a further fall in credit, but only if the credit that is imploding is of the type that has been created out of thin air. Click here to access the article.


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