Member-only content. Please Login or get a free trial of Rick's Picks to view.
COMMENTARY for Friday
TODAY'S ACTION for Friday
Rick's Picks for Friday
We hold two January 230 calls for 1.00, having missed acquiring two more yesterday when they traded down to 0.54, two cents above our bid. We’ll stick with what we’ve got and cross our fingers. As noted here earlier, this is a speculative bet on the prospect of a Big Rally kicking off the New Year.
There was less to yesterday’s rally than is apparent at a glance, since a close examination reveals that it peaked without exceeding the overnight high. One needs to drop down to the 15-minute chart to find an impulse leg, and the only valid one evident is the pisher shown in the chart. It is part of a pattern that projects to 1098.50, but we’ll set the bar a tad higher, at 1100.40, to alert us to the possibility that the rally is more than mere noise. _______ UPDATE: Although February Gold managed to exceed 1100.40 by seven points, it failed nonetheless to rise above categorization as mere noise. Tellingly, the peak failed to surpass a point ‘C’ peak that had yielded an earlier ‘D’ target at 1091.30. For those looking to catch the ultimate low of this trying correction cycle, take comfort in the fact that Gold is incapable of fooling even the Village Idiot here. If it’s going to turn around, it cannot do so without signaling the world via a bullish impulse leg on the hourly chart. In the meantime, it needn’t cost us anything to buy speculatively and repeatedly at the targets and midpoints of corrective patterns, as well as at the ‘X’ entry points of camouflaged rally patterns on the very lesser charts.
Member-only content. Please Login or get a free trial of Rick's Picks to view.
Member-only content. Please Login or get a free trial of Rick's Picks to view.
Take any dozen good reasons for being bearish right now and they still don’t equal the bullishness of the chart shown. The undeniably compelling rally objective is 13085, a 4.8% move from current levels, and one can only surmise that the dusting the 12158 midpoint received on the last pullback (12/28) all but clinched a finishing stroke to the higher number. Moreover, it implies that bears shouldn’t get their hopes too high even if, in the next few days, the Dow plummets 324 points to retest the midpoint support. As of now, that would signal not weakness, but a screaming opportunity to get long. Hard to believe, really, but that’s what the charts say.
This Just In... for Friday
An interesting take from Jesse’s Cafe American, it would appear that households have effectively been pushed into Treasurys by almost non-existent yields on money-market funds. Click here for the story.
Hidden Pivot Webinar & Tutorials
The next Hidden Pivot Webinar will be held on Feb. 29th - Mar. 1st. 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.
Readers Swarm a Crazy Statistic
by Rick Ackerman on January 1, 2010 12:01 am GMT · 25 comments
Readers jumped all over the nutty idea, presented here yesterday, that America’s economic prowess has remained undiminished by decades of job losses in the manufacturing sector. That was a salient point of the graph below, which accompanied an upbeat article by Jim Manzi in National Affairs. Although Manzi’s blog is first-rate, we wondered how he could have gone so far awry as to suggest that the nation’s manufacturing sector is as economically meaningful as ever, notwithstanding the fact that it employs far fewer workers than in the past. If you take the graph at face value, manufacturing’s share of the country’s GDP has hovered just below 15 percent for more » Read the full article