There are two Hidden Pivots that could stop Silver Wheaton’s marauding spree, at least for a while, and I’ve used them in today’s touts to establish a small short position against the bullish butterfly we already hold. Whether or not you do the trade, the price points are worth your attention if you follow the stock.
From the monthly archives:
August 2011
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Silver got mired in a correction yesterday, evidently grown timid about following Gold’s aggressive lead. Even so, the choppy action penetrated a 43.795 midpoint resistance to the upside, presumably clearing the way for an easy shot at its ‘D’ sibling, 45.110. Night owls should consider bottom-fishing at the corrective midpoint shown, but please note that a downthrust that gets past the two labeled lows would create a bearish impulse leg of lesser degree (and also another possible buying opportunity at the ‘p’ midpoint or ‘d’ target of the pattern).
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A 44.510 rally target first broached here when the futures were trading more than 10 percent lower looks like it’s a lead-pipe cinch, given the ease with which the futures have been chomping through lesser Hidden Pivot resistances in the rally cycle begun August 9 from 37.025. I’ve reproduced an hourly chart alongside that shows how compelling the target is. You should allow for additional upside to 45.850 if 44.510 is decisively breached. That target can be found simply by sliding down to the lower ‘A’ at 33.470 shown in the chart.
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Crisis, or Circus?
by Rick Ackerman on August 23, 2011 12:01 am GMT · 48 comments
[In the daily give-and-take of the Rick’s Picks forum, Mario Cavolo, an American expatriate living in Shanghai, is the perennial optimist, sort of. While hardly unmindful of America’s steep decline, he sees offsets in a rising global middle class, particularly in India and China, and in an upper-class America that will continue to flourish even in hard times. Skeptical though we are sometimes about his thesis, we must admit that a drive through Palm Beach, Florida, the other day reminded us that there are concentrations of wealth in this country so deep that even if 90% of it were to vanish tomorrow, the super-rich will still be driving Bentleys and shopping on Worth Avenue and Rodeo Drive. For a summation of Mario’s thoughts as U.S. stocks continue their descent into Hell, read on. RA]
Let’s begin this commentary by asking exactly what specific Lehman-type crisis recently occurred or will occur to justify the nasty global equities decline and its continuation as, perhaps, the 2011-2012 Crisis? We can quickly dismiss the idea that it was Standard & Poor’s credit downgrade of U.S. debt. I mean, come on folks, it has been beyond obvious that global credit markets are awash in debt and therefore higher-risk. Things were known to be bad before the downgrade, and the downgrade itself did not make the fundamental problems any worse. The credit downgrade was a message to Washington, long overdue, but it probably did more to soil S&P’s reputation, since it is still well recalled that the firm rated sub-prime junk as triple-A a few years back. So let’s move on to more substantive issues to identify what is wrong with the global economy right now.
Can we say it was the recent “realization” that Washington bankers and politicians have been pillaging the financial system greedily? No, the reality of those issues has been baked into the cake ever since. We are far beyond any hope that those in power – I hesitate to call them leaders — in Washington or on Wall Street will do the right thing. Neither bankers nor politicians are ever going take a bullet for the good of the country. Rich people just don’t do that sort of thing, reminding us why a wise Biblical figure named Jesus quipped one day about it being easier for a camel to pass through the eye of a needle… Indeed. They will instead follow the values of any otherwise worthy seafaring captain and go down with the ship. » Read the full article