Thursday, February 17, 2011

Silver Wheaton's strength has hardly been conducive to our opening a new position in the stock, but it's possible we'll get a low-risk opportunity to do so on the pullback that has followed yesterday's head-fake high. For further details, see today's tout.

The fleeting head-fake on the opening refreshed the bull trend by exceeding January 5's external peak at 36.78. The implication is that the pullback that has ensued could provide us with a low-risk buying opportunity.  However, the 35.68 midpoint support of the corrective pattern will not be particularly useful for such purposes, since it coincides with the low of yesterday's selloff. Instead, let's put in a stink bid for 800 shares at 35.10, three cents above the 'd' target associated with the midpoint.  A 34.93 stop-loss is advised.

The Mother of All Bear Rallies continues to make progress -- at this point, one cub-like step at a time -- toward a 1356.00 target that promises to thwart buyers as few Hidden Pivots have in the last two years.  Meanwhile, the first of two minor Hidden Pivot targets given here yesterday would have produced a small profit for scalpers, at least in theory; and now the second, at 1339.25 (stop 1340.25), has the potential to do the same.  Keep in mind that we are shorting the little stuff on the off-chance that a major top may come from a minor Hidden Pivot rather from El Capitan at 1356.00.

The April contract finished well below the day's highs, but not before re-energizing the bull trend by surpassing an 'external' peak at 1380.60 recorded January 19 on the way down.  It would take a dip below 1344.10 to negate the bullish implications of yesterday's thrust, but otherwise we can use as our minimum upside objective a Hidden Pivot at 1394.80 whose provenance is shown in the chart.