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COMMENTARY for Tuesday
TODAY'S ACTION for Tuesday
Rick's Picks for Tuesday
Friday’s wilding spree didn’t quite reach the nakedly ambitious target at 1170.75 that I’d said would max out the move, so it’s still valid. Above it is a new target at 1205.25 that came into focus as a result of yesterday’s price action. It is tied to an 1174.75 midpoint that hasn’t much trading value, since it coincides with some important highs recorded last Wednesday. Night owls should look for a possible buying opportunity on a pullback to 1151.50, a minor midpoint support that comes from the hourly chart (A=1159.50). _______ UPDATE (1:15 a.m. EDT): The futures are in screw-the-pooch mode tonight, having dipped as low as 1148.50. It looks like it’s going to be a long night.
Friday’s 1214.90 peak will have double stopping power because of a midpoint Hidden Pivot resistance not far below it at 1213.75. A close above the latter number would signal that the futures are ready to take a leg up to 1243.10. There were no glowing opportunities to get long early Monday evening, although the 1193.70 midpoint shown in the chart would be worth bottom-fishing if the opportunity should arise. It would of course be preempted if the futures rally first above the 1204.80 high I’ve used for a point ‘C’. _______ UPDATE (1:22 a.m. EDT): A gentle rally surpassed 1204.80 overnight, negating the opportunity.
Silver curiously held its ground yesterday against mild weakness in Gold, setting up a possible thrust to as high as 19.430 over the near-term. First, though, buyers will need to push the June contract past hidden resistance at 18.825, the midpoint sibling of our target. A 50-cent pullback would not only do no harm to the bullish technical picture, it would help rest the futures for a run-up above last week’s moderately challenging highs.
For the record, the nimble trader could have bought May 260 calls for 0.50 when stocks were bottoming last Thursday. They traded for 4.50 yesterday, when profit-taking probably acted as a restraint on Apple’s further progress. The stock’s pullback was so shallow that anyone still short should have been alarmed by day’s end. A rally to 266.32 is indicated, with a possible midpoint impediment at 257.43.
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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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Finally, a REAL European Bailout!
by Rick Ackerman on May 11, 2010 12:05 am GMT · 13 comments
At last, the European Union has decided to do a USA-style bailout – one with a quintessentially American, trillion dollar price tag and a shining vision of success. “[The agreement] will ensure that any attempt to weaken the stability of the euro will fail,” said European Commission President Jose Manuel Barroso. Yeah, but for how long? We wonder if Mr. Barroso noticed that the euro finished on a downswing yesterday (see chart below), even as the ink on this latest deal was drying. Still, we hate to rain on the EU’s parade, and even if the Mother of All Eurobailouts failed to » Read the full article