Paying close attention to subtleties can yield analytical rewards, as it did when we noticed how a rally in Silver had failed to surpass some seemingly minor peaks on the 15-minute chart. The implication was that buyers were spent for the day, an observation that later proved to be correct. Gold and Silver were in tired but nonetheless bullish consolidations on this particular morning, but we still found ways to force trades in each via camouflage. We also discussed ways to exploit an expected 15-point rally in the E-Mini S&Ps – a goal fraught with danger, since the futures were already up 15 points, caught in a pre-Thanksgiving short-squeeze.
Wednesday, November 24, 2010
SIH11 – March Silver (Last:27.550)
– Posted in: Current Touts Free Rick's PicksA Hidden Pivot at 30.155 is equivalent to the one given here earlier for the December contract. The futures have spent the last two days oscillating around the 27.605 midpoint pivot, but to me the action looks more like accumulation than distribution. Camouflageurs can use the three peaks notched on November 9 and 10 for cover; or even more subtly, the consolidation bars on the lesser charts from Tuesday.
GCG11 – February Gold (Last:1374.00)
– Posted in: Current Touts Free Rick's PicksTuesday's final thrust fell just a tad shy of a minor Hidden Pivot target at 1386.10, hinting that the futures may need some rest at night to stage for the next push. The bull trend looks healthy, however, because each new up-leg is creating a fresh impulse leg on the lesser charts, as we should expect. The most bullish thing that could happen today to kick things into high gear for perhaps the rest of the week would be a print exceeding the 1397.00 peak-let created November 12 on the way down. However, the futures need only close above 1380.20, the HP midpoint of the pattern shown, to set the stage for a finishing stroke to its 'D' sibling at 1429.30.
ESZ10 – E-Mini S&P (Last:1181.00)
– Posted in: Current Touts Free Rick's PicksAn 1175.50 target disseminated during yesterday's pre-opening briefing caught the low of the day within three ticks, although I'd recommended that traders use a two-tick (yikes!) stop-loss if they planned to bottom-fish. There was nothing exciting in the offing Tuesday night, although traders would have an excellent opportunity to try getting long via camouflage if the futures trace out a pattern very much like the one shown.
ECZ10 – December Euro (Last:1.3375)
– Posted in: Current Touts Free Rick's PicksYesterday's 1.3356 low was just 0.0013 points beneath the midpoint support show, but that is sufficient to imply that the now three-week-old downtrend is likely to continue to at least 1.2953, the 'd' target with which it is associated. There is a lesser but still important support at these levels as well, at 1.3359, and its breach yesterday, slight though it was, is yet further evidence of more weakness to come. The Hidden Pivot support at 1.2953 can serve as our minimum downside objective for the December Euro, but if and when it is reached, I'll recommend bottom-fishing there aggressively with a tight stop-loss, since corroborating action at the midpoint has been rather precise.
