Have you taken a trading course — or two, or three — only to find yourself still struggling years later to achieve profitability? Maybe you’re someone with virtually no knowledge of the stock market looking for an alternative source of income if the economy should crash. You could also be bored housewife keen on using your mornings more productively. Or a college grad with no job prospects…or a laid-off factory worker…or a Realtor worried about very tough times ahead. Or a Louisiana shrimper looking for an easier life. Or a guy who’s tired of living with his mother…or of being hounded by loan sharks. If so, Rick’s Picks invites you to apply for a full scholarship to the Hidden Pivot Webinar scheduled for January 11-12. Three stipends worth $990 apiece will be awarded. However, this particular class, as well as the post-grad perks you’ll receive, will go beyond anything we’ve offered in the six years » Read the full article
This demo was done at the invitation of TradersLog.com and starts with a brief explanation of the Hidden Pivot Method. We then took a close look at some key charts that provide clues concerning how the global financial crisis might play out. Our focus was on long-term charts for T-Bonds, U.S. stocks, the dollar and the euro. The conclusions we drew are somewhat counterintuitive, most particularly a prediction that the euro will not crash when the PIIGs eventually default.
Reputable sources reported that yesterday’s mini-crash in gold was orchestrated by sellers that included the U.S. Fed, the BIS and the Bank of England. Under the circumstances, with the central banks doing their sleazy best to temporarily overwhelm sharp rallies in bullion, we can’t be too careful initiating trades in gold or in managing position risk once we’re aboard.
Accordingly, today’s Gold tout is accompanied by a chart that shows numerous possibilities and potential camouflage opportunities. Our objective is to get long, but only at such times as we can pare risk down to a bare minimum, and only when the entry signal meets our criteria precisely. Considering the bullish triangle that has been developing for months on Comex Gold’s daily charts, seizing the opportunity is akin to reaching beneath a guillotine to retrieve a 10 carat diamond.
Yesterday’s bull trap created an impulse leg with immediate downside potential to 1210.00. The pattern is less than compelling but clear enough nonetheless to warrant bottom-fishing via camouflage at 1228.25. That’s the target’s midpoint sibling, and it promises to at least blunt the onslaught begun from Thursday morning’s fleeting high. Alternatively, on a bullish turn, camouflageurs could try leveraging a pullback from the 1246.75 peak labeled in the chart. _________ UPDATE (9:11 a.m. EST): The 1228.25 support came within a single tick of nailing the overnight low, so I am establishing a tracking position for your further guidance. Although a bid at 1228.25 would have just missed, the ‘camo’ pattern that followed the reversal we’d anticipated was absolute perfection on the 30-minute chart (A=1228.50, B=12432.75, C=1235.75). Entry was signaled at 1239.50, and profits taken on half the position (i.e., two contracts) at the p midpoint, 1243.00. The subsequent thrust to ‘D’ at 1250.25 fell two ticks shy of being a “winner,” and so we hold two contracts with a cost basis of 1236.00. Use a fixed stop-loss at 1235.50 for now, but switch to a 4.00-point trailing stop on the single contract that would remain if 1267.00 is hit. I am not recommending that you carry the position over the weekend, so if 1267.00 is reached in the final hour, take the money and run. _______ FURTHER UPDATE (11:53 a.m. EST): The futures have wafted above our “winner” threshold at 1250.25, allowing us to exit a third contract and keep one with a paper profit-adjusted cost basis of 1228.75. My short-term target is now 1259.25, implying that a too-tight 1.50-point trailing stop would be in effect from the so-far high at 1255.25. My suggestion is to play it as you please, but to use a “structural” stop at 1246.50 whose provenance is clear on the one-minute chart._______ AND YET ANOTHER (1:14 p.m. EST): In the chat room just now, I’ve suggested taking some QQQ puts home for the weekend. Buy January 54 puts if and when the December E-Mini S&Ps trade at or near the 1259.25 target. The equivalent target for the march contract is 1253.50.
It is 20 minutes from Friday’s close, and chat-roomers have reported buying QQQ Jan 54 puts and Jan 53 puts, respectively, for 0.74 and 0.96. These buys came with the E-Mini futures trading within a hair of the rally targets I’d furnished for the December and March contracts. I am establishing a tracking position for both of these options, but for now, just sit tight.
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.