No sooner had Merkel and Sarkozy put the finishing touches on the latest bailout rumors than Standard & Poor’s was threatening to downgrade the debt of 15 of the 17 euroland nations. Recall that as the week began, France and Germany were talking up the latest supposed solution to the debt crisis. Bigger and better than their last supposed solution, it drew a rave from that man of discernment and cunning, Tim Geithner, who pulled out all the stops in making much ado about nothing. “The eyes of the world are very much on Europe now,” he told reporters in Berlin. “[We should be] very encouraged by developments in Europe in the past two weeks, including reform commitments in Italy, Spain and Greece.” » Read the full article
Early Wednesday morning, March Silver was stealing up on a bullish threshold whose breach could portend more upside over the near term to as high as 34.270. Check out the chart that accompanies today’s tout, since it offers a compelling picture as well as some useful price points for camouflage.
All of the gurgly action of the last few days has taken place just beneath the external peak at 1270.75 recorded on November 14. That makes the monster rally from 1147 suspect, since, having exceeded no prior peaks, it is not even impulsive on the daily chart. A minor upthrust from these levels would remedy that, but until such time as one occurs, and even in the wake of the recent 120-point explosion, the burden of proof properly rests with the bulls.
Tesla got short-squeezed to within 28 cents of the 86.72 target I’d proffered early Monday morning, but a second-wind rally to 88.00 suggests it’s got eyes for 104.44, the ‘D’ target associated with the first number. It can serve as a minimum upside objective for now, implying that all trades between here and there be positioned from the long side. We’ll plan on buying weekly puts if and when the target is reached, provided it happens before Wednesday of the given week. Please note as well that a lesser Hidden Pivot at 94.19 (see inset) has the potential to stop the rally cold and can therefore be used for spec camouflage shorts.
All signs point higher at the moment, but even Google will have to top somewhere. My best-bet for a short-able apex is 929.78, the Hidden Pivot target of a well-defined ABCD on the monthly chart (see inset). You can try shorting with camouflage at that number, or at the D target (in purple) of the lesser pattern, but until then all trades should incorporate a bullish bias.