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COMMENTARY for Wednesday
TODAY'S ACTION for Wednesday
Rick's Picks for Wednesday
Take a good look at the chart alongside if you think it’s time for bears to take a stand. If ever a price pattern reeked of upwardliness, this is it. The futures showed no hesitation last week maneuvering into position to head-butt January’s highs, and so we shouldn’t look for them to resist the onslaught for long. Let’s hope the broad averages are not predicting the political resurgence of Barack Obama and his whacky ideas. That would be quite a price to pay for fostering the egregiously misguided impression that Mr. Obama has turned out to be a guy that Wall Street can live with.
The futures passed up a chance to savage bulls yesterday, bouncing back sharply after having failed to achieve the target of a minor downtrend. That’s bullish as far as it goes, but a decisive confirmation today seems mildly unlikely, since it would require a print exceeding 1148.00. In the meantime, I’ve sketched out a price pattern that would yield an enticing buy at a midpoint support. Specific numbers would be premature t this point, since the futures were groping for a point ‘C’ high when we went to press around 1 a.m. EST.
Yesterday’s rally, heartwarming as it may have seemed, has given us only dueling impulse legs on the intraday charts so far. The bias is bullish nonetheless and projects to at least 18.075, but we should like to see the targeted thrust go a penny higher, exceeding the look-to-the-left peak shown in the chart, before we get excited.
Apple not only has a hot story, it’s got some great products, and the company’s shares continue to earn their lofty multiple the old-fashioned way — i.e., with a fabulous run of genuine earnings growth. That said, we should pay close attention to the rally at these heights, since it’s about to encounter a Hidden Pivot resistance on the monthly chart at 231.00, exactly $6 above the so-far record high. There are no targets beyond that number that are particularly appealing, although an easy move past it would portend more upside of at least $15-$20.
Copper reversed before reaching a bearish D target on the 30-minute chart, and above an important prior low. In the process of rebounding, a new bullish pattern emerged whose midpoint has been surpassed. The sibling D target is at 3.4440. A breach of this level would suggest that the 3.6110 target, first mentioned here on March 4, remains in play. Traders should look for a smaller pattern to provide a camouflaged buying opportunity. (Posted by Doug McLagan) _______ UPDATE (03:00 p.m. EST): We viewed the copper chart as bullish, and although the 3.4440 target was reached, that’s as far as it went. Sellers slammed the market from an eyelash above the pivot, quickly shaving more than $2,000 off the value of each contract.
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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.
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Is the Prius Haunted by Demons?
by Rick Ackerman on March 10, 2010 7:07 am GMT · 26 comments
So, are we now supposed to believe that every Toyota that runs off the road, or plows into another car, or leaps a concrete berm in a Safeway parking lot, is a runaway? The latest report of a Toyota wilding spree – supposedly caused by a faulty Prius gas pedal — surfaced the other day in California. The driver said the car reached 94 mph, although we’d never have imagined the tortoise-shaped vehicle was capable of exceeding the speed limit, even on steep downhill stretches. Another Prius crashed into a stone wall in New York, but we’re awaiting the accident report before we blame Japanese engineers. The automaker said it was going to look into both incidents, as well as some others, and we hope they do. The » Read the full article