Friday’s price action tediously marked time, further solidifying the bold impulse leg begun three weeks ago from nearly 60 points lower. Entry into this pattern at 1319.75 has already been tripped, so any opportunities to get long signaled now on the very lesser charts are fair game. FYI, on the three-minute chart even in retrospect, such opportunities were difficult to find. This implies we may need to drill still lower, to perhaps a one-minute time frame, to find the opportunity we’re looking for. Because the week-ending short-squeeze came in the final hour of the session, bears are likely to be on the hook when trading resumes Sunday evening. Although DaBoyz who dominate on Sundays habitually try to maneuver index futures lower, they may have difficulty doing so this week. Accordingly, if the futures pull back no farther than 2-3 points, shorts had better take cover ahead of Monday morning’s opening and bulls should trade more boldly than usual. _______ UPDATE (8:45 p.m. EDT): The futures have been down as much as 10 points so far tonight, implying DaSleazeballs are having difficulty maneuvering stocks low enough to exhaust sellers as they do nearly every Sunday. If DaBoyz should briefly lose control, keep the 1280.50 target in mind that was flagged here a while back, since it’s still valid. So is the midpoint at 1304.25, which explains why the futures have been dancing around that number for the last four days.
From the monthly archives:
July 2011
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Palladium prices are about to blast off, says our friend Vronsky in an article just out at Gold-Eagle.com. The prospect of enormous growth globally in auto production, coupled with the exhaustion of Russian supplies and a growing demand for palladium ETFs, could squeeze quotes to as high as $2300 an ounce over the next 12 to 15 months, he writes. Click here to read the full article.
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If you’re troubled whenever the price of gold swoons or fails to rise for weeks at a time, read Ambrose Evans-Pritchard’s latest dispatch, Return of the Gold Standard as World Order Unravels. Regardless of whether gold returns officially to the status of money, demand for it as a hedge against the central banks’ depradations is growing around the world and unlikely to diminish any time soon. Click here for the full article.
Since bottoming on June 4, Google has generated the kind of impulse leg that could keep it buoyant for the rest of the summer. The rally exceeded no fewer than five “external” peaks on the daily chart without pausing for breath, a feat that will allow the stock to take its sweet old time consolidating the move in the days ahead. Let’s try to leg on a bullish butterfly spread by buying a call if and when Google falls to a Hidden Pivot support at 518.82. The target can be found on the 15-minute chart, where A=550.68 on July 7. Buy one September 600 call, using a stop-loss at 518. 20. Pay no more than the midpoint of the spread, since it is extremely wide. _______ UPDATE (9:16 p.m. EDT): Astounding! We thought that a $595 quote that flashed on our screen was an error. Evidently not. Earnings released after the close were so impressive that the stock is currently in the throes of a murderous short-squeeze to $600 — up nearly $70 over the day session close. So much for the call options we might have bought for around $6; they’ll be trading for at least $25 come morning.
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Gold Goes to Extremes to Test Our Nerves
by Rick Ackerman on July 18, 2011 12:01 am GMT · 14 comments
As gold ascends higher and higher into thin air, it continues to test every crag, jib, flake, crevice and runout on the rock face, much to the consternation of traders, investors and speculators. At these unaccustomed heights, it is perhaps only the long-term bull who acquired physical gold a decade ago who has the reserves of patience and calm needed to take corrective swoons and trendless tedium in stride. From a technical standpoint, we find that pullbacks both major and minor have gone to absolute extremes in order to prey on our individual and collective fears and doubts. For instance, when Gold and Silver futures prices plummeted from their May 2 highs, the seeming kamikaze dive brought them to within mere ticks of an extreme “danger zone” we’d identified using Hidden Pivot analysis. Then, just as suddenly, quotes rocketed skyward, recouping nearly half of the losses in just a few short days. And last week, a selloff that took two days to exhaust the nervous Nellies tested bulls yet again, with August Gold reversing sharply from within less than a single point of a 1576.90 Hidden Pivot support. However, even knowing where, exactly, to expect the turn offered no easy path to profits, since gold’s trampoline bounce came in the dead of night, starting at around 3:25 a.m. Eastern. » Read the full article