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 Thursday
Our friend Erich Simon asked his scientist cousin in Germany what he thinks about the Gulf oil gusher. Here is the cousin’s interesting response:
“The claim of several leakage sites has been around. The scientific method (and I can’t deny my pedigree here) would be to say “show the data”, which at the moment is unlikely to happen due to whatever degree of the incompetence <-> conspiracy continuum. Seriously, this is a very difficult situation.
“Fractured seabed: wouldn’t want to nuke the hole closed then…..
“Peak Oil debunking? I know there are discussions between Peak Oil people vs. abiotic origin of and hence plentiful supply with oil. Fossil origin of oil means finite supply. Abiotic origin sounds nice, but if true will require extremely deep drilling = difficult = expensive = unclear whether it can supply oil at the economically required rate. Regardless of which side one takes in a fossil vs. abiotic origin debate, slowing growth or even decline of oil production by whatever mechanism (fossil oil running out, abiotic reserves too difficult to reach by drilling) has to be called Peak Oil. The debates are on whether the globe is at that tipping point. Personally I don’t care too much about cheap talk of those combattants and them scoring discussion victories, but I just wonder » Read the full article
Some city and county employees and school districts are taking dramatic steps to try to solve their budget problems.
The Sacramento County, Calif., sheriff’s deputies union is using mobile billboards, mailers and radio and newspaper ads with vivid images and messages in a bid to avert more layoffs. The campaign includes a photo of a child with an adult’s hand over its mouth and the words, “Your child could be at risk!” Another shows a masked man breaking through a door and asks, “Do you feel safe?”
via Ads are latest weapon to scare off layoffs – USATODAY.com.
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DIA – Diamonds (Last:104.26)
by Rick Ackerman on June 17, 2010 12:01 am GMT
We weathered a lot of kicking, screaming and flailing yesterday, but in the end, buying by Larry Kudlow alone proved insufficient to move the E-Mini S&P futures above a Hidden Pivot resistance at 1115.75 that was drum-rolled in yesterday’s tout. The fact that there were evidently no real sellers around was undoubtedly a plus for Larry, but he’ll need the help of panicky bears if this lead balloon is to waft higher, as it might. In the meantime, we can use an “external” peak at 105.23 (May 19) to warn us when the pit bulls have begun to pose a minor threat to our peace of mind, if not to our hunch that a collapse looms. We continue to hold four July 96 puts for 0.70. _______ UPDATE (June 18): Two days of what passes for “action,” and the Diamonds have yet to go any higher than 104.84. They are getting heavy, for sure, but don’t count DaBoyz out yet, since they have been able to sustain altitude while biding their time ahead of the next short-squeeze opportunity.