I mentioned in today's tout for Silver Wheaton that its chart looks no worse than that of this supposed world-beater. Meanwhile, Apple is approaching a 357.97 midpoint support where we can try bottom-fishing. Specifically, I'll recommend buying two September 400 calls if and when the stock reaches the midpoint. Stop yourself out if the calls trade for 0.50 less than you've paid for them. ________ UPDATE: We bought the calls @ 2.20, but if you paid more please let me know, since I prefer to track all options trades that I recommend on a worst-case basis. In any event, stop yourself out if they trade for 0.50 less -- officially, 1.70. I am not thrilled with the fact that the stock overshot the target by $2, since that implies that lower prices are coming. For now, though, offer one of the calls to close for 4.10.
Friday, August 19, 2011
SLW – Silver Wheaton (Last:36.60)
– Posted in: Current Touts Free Rick's PicksMost of us expected mining stocks to get hit when the broad averages finally collapsed. Take a look at the hourly chart of this stock before you despair, however, since the carnage has been far worse for companies not in the gold or silver business. I've reproduced a chart of Apple on this page today as well, and as you can see for yourself, Silver Wheaton's chart looks no worse. We continue to hold the September 42/46/50 call butterfly for $1.04.
SIU11 – September Silver (Last:41.215)
– Posted in: Current Touts Rick's PicksAn important rally target at 44.510 broached here earlier remains valid, but be alert to the possibility of a stall at exactly 41.455, the 'D' target of the pattern shown. The futures were closing quickly on that Hidden Pivot at around 3:22 a.m., so it's possible the expected skirmish will take place before the regular session begins.
$2000 for Gold, 1000 for S&P 500: No Surprise
– Posted in: Rick's PicksSome very round numbers now coming into focus are so compelling that they seem fated: 1000 on the S&Ps, down a third from May's peak for the Mother of All Bear Rallies; and $2000 for an ounce of gold. Who have thunk it? Pretty much everybody in the newsletter world, including subscribers, is who.
GCZ11 – December Gold (Last:1852.70)
– Posted in: Current Touts Rick's PicksThe very bullish target at 1893.10 that I proffered here earlier is coming up more quickly than I might have anticipated. Although it may be exceeded, I doubt it would be by much, since there is a second, equally compelling Hidden Pivot target at 1901.20. I would be very surprised if the rally does not make it to one number or the other, or perhaps into the range between them, but I will also be surprised if bulls simply blow past both. Were that to occur, I would rate $2000 within a week an even-odds bet.
ESU11 – September E-Mini S&P (Last:1133.00)
– Posted in: Current Touts Rick's PicksThe pattern shown projects to 1019.50 by way of a midpoint at 1113.00. That would put the Dow down around 10,000 -- hardly an assault on logic, technical or otherwise. Camouflage opportunities are best pursued at swing highs or lows defined on the hourly chart, but there is little point in trying to guess where they are likely to occur until trading begins on Friday.
Flight to Treasurys Has Little to Do with ‘Quality’
– Posted in: Commentary for the Week of March 8 FreeThe news media will eventually figure out the truth -- that stocks got pulped yesterday simply because they are in a bear market. The Mother of All Bears, quite possibly. The Dow finished the day down 419 points after trading more than a hundred points lower than that intraday. The selloff was attributed to the usual suspects: “fears” over Europe’s shaky financial condition, and America’s apparent relapse into recession. Although both concerns have been with us in spades for more than a little while, they seem, suddenly, to have become overwhelming and unmanageable now that the world’s stock markets are imploding. Of course, there will be equally spectacular rallies in the days, weeks and months ahead, and, as was the case during the 1930s, they will be interpreted as signaling a glimmer of hope for the economy. The press will do the interpreting, but most Americans will know better. The Great Recession has returned with a vengeance, and predictions of 2% GDP growth are about to be trimmed to sub-zero by the same morons who were so optimistic just a few weeks ago. With Dow stocks down 500 points in the opening hour yesterday, Reuters and some other news sources initially theorized that “investors” – a euphemism these days for algorithm-driven machines -- were despondent over a Philly Fed report that factory activity in the Middle Atlantic region had “unexpectedly” fallen to its lowest level since March 2009. Reuters tactfully refrained from identifying by name the experts who had been looking for better numbers, but they would have to have emerged from a sarcophagus to have been surprised by the bad news. Meanwhile, although the eggheads who compile economic statistics may be deaf, dumb and blind to the real world, Joe Sixpack, unemployed for the last 36 months and no