Monday, December 13, 2010

Silver Wheaton will remain vulnerable unless it pops above 40.39 over the next couple of days.  Otherwise, a corrective pattern projecting to as low as 33.90 should be regarded a worst-case possibility for the near term. The downtrend has not yet gotten close to the 36.50 midpoint linked to that target, but if and when it does, it will make an opportune spot to try bottom-fishing with a tight stop-loss.  For now, we'll let our position ride:  long 800 shares with a cost basis of 14.27 against eight January 34 puts we acquired for 0.77

DaBoyz were unable to squeeze much out of Sunday night's opening bar, which peaked just a couple of points above Friday's manipulated, rosy-looking high.  However, They have allowed only a shallow pullback since, and we should therefore expect Them to keep trying as the night wears on. They'll have a 'D' Hidden Pivot at 1250.25 to shoot at -- 7.50 points above the so-far peak at 1242.75.  As of around 10:20 p.m., camouflage opportunities appeared limited, since even on the two-minute chart the last of them had been used up.

A modest, 40-cent thrust today to 29.295 would knock the bad guys for a loop, since that would turn all of the intraday charts bullish. The rally presumably would be a downpayment on a larger pattern projecting to 32.21.  The midpoint resistance associated with that 'D' target is 30.01, and the higher number would be well in play if 30.01 were to be exceeded on a closing basis for two consecutive days.

Friday's low occurred at 1372.70, just above where we'd sought to bottom-fish, and although the target itself remains theoretically valid, we'll put it aside because it is no longer fresh.  Starting the new week, the burden of proof still lies with the bulls, and they'll need to push above 1401.50 to generate an encouraging impulse leg on the intraday charts.  Even more constructive would be a two-day close above 1410.25, a midpoint resistance associated with a short-term rally target at 1448.00.