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
Short-squeeze mania was at its most powerful yesterday, pumped to-the-max ahead of the three-day holiday weekend. The hysteria pushed the futures somewhat above a 1098.75 midpoint pivot that we were using as a minimum correction target. The actual high so far has been 1104.00 — an overshoot sufficient to imply that buyers are likely to dominate once again today. Even so, the very difficulty of getting short on a Friday preceding Memorial Day compels us to try. I’d suggest using camouflage patterns on the three-minute chart to do so, although the one-size-fits-all solution would be to buy a put-option “lottery ticket” at the closing bell if the broad averages are at or near their intraday highs. This should not be done in size, since it is a pure speculation, presumably unsupported Hidden Pivot factors.
Click to Enlarge
The futures spent the whole day obsessing over an important midpoint Hidden Pivot at 1214.90 that was flagged in yesterday’s tout. A two-day close above it is still needed to signal a likely thrust to 1261.80, but a stab above a prior peak at 1222.30 would likely also do the trick. Amidst all the noise on Thursday, the futures could muster only 1220.60. Night owls can try bottom-fishing at 1210.90, stop 1210.40. This is the ‘d’ target of a corrective pattern taken from the 5-minute chart, where a=1217.10. (See also: our recent gold coverage)
The futures appeared bound for at least 18.890 over the near term, having demolished that Hidden Pivot’s midpoint sibling at 18.450 earlier in the day. A move to the target would be especially good news provided bulls don’t give back too much of it back, since a close merely above 18.795 will shorten the odds of a thrust to a major target at 20.170 noted here earlier.
Although the Dollar Index has spent the last two weeks meandering sideways, it has nothing to prove at this point, since the heavy lifting has already been done. This was true a week ago, when DXY stabbed above a key peak at 86.87 recorded in April 2009. The consolidation from the recent high at 87.46 could come down to as low as 82.86 without disturbing the long-term bullish case at all, but in any event, another powerful leg up would be signaled by a “booster-stage” rally of 1.86 points.
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.
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.
‘Top Kill’ Effort Must Succeed or Else…
by Rick Ackerman on May 28, 2010 2:03 am GMT · 20 comments
We may all be breathing a sigh of relief by the time you read this, but it remained uncertain at press time whether British Petroleum’s efforts to plug a massive oil leak in the Gulf of Mexico would succeed. Earlier in the day, the company began pumping a heavy fluid called “mud” into the damaged well, but the process was temporarily halted because the high-powered flow of oil and gas from the well was causing too much of the mud to escape. BP said such delays had been expected but that they hoped to resume the sealing operation by late tonight. The effort came amidst reports that oil has been gushing from the well at a rate much greater than what BP had first estimated. The company originally » Read the full article