U.S. stocks showed unbridled enthusiasm yesterday for the changing of the guard in North Korea, tacking 337 points onto the Dow Industrial Average. Could heir apparent Kim Jong Eun be the Man of Peace the world has been waiting for? It sure looked that way on Wall Street, where a wave of optimism about something fabulous swamped sellers from the opening bell. Even if the young Kim – reportedly a huge basketball fan like his dad — merely slows North Korea’s mischievous transfer of nuclear weapons technology to Iran’s mullahs, jihadists and terrorists around the world, it would be the best Christmas present our crisis-fatigued planet could receive. Small wonder, then, that North Koreans were sobbing in the streets as they grieved the loss of their Dear Leader. And very dear he must have been, to judge from the tens of thousands of mourners who lined up for hours to pay their respects as Kim Jong Il lay in state, ensconced in a glass-covered coffin. Was he smiling when he died? We couldn’t tell looking at the picture below, although we won’t be surprised if a future biographer reveals that Kim, who’s name means “regal hill,” was a world-class kibitzer in private. » Read the full article
Shorting gold and silver via camouflage will take some getting used to, but we may as well try to make hay as long as weakness is the prevailing mood. A subtle opportunity in Silver was developing late Wednesday night, and so I’ve sketched it out hypothetically. If it doesn’t pan out you could also try bottom-fishing in the same vehicle at a downside Hidden Pivot I’ve provided.) _______ UPDATE (2:27 a.m. EST): Overnight, our respective bids in Comex Gold and Comex Silver missed buyable bottoms by a total of four ticks. Fortunately, there will always be other opportunities.
A bottom-fishing setup similar to the one I’ve featured in today’s gold tout is where night owls should look for action. The ‘p’ midpoint where you can attempt it lies at 29.045, and you may use either camouflage, or more dangerously a three-tick stop-loss. The futures would be signaling further distress over the near-term down to as low as 28.505 if the midpoint support is easily breached. If you’d prefer trying to short this vehicle, the 15-minute chart holds some enticing possibilities. Check out the inset if you want to see a subtle one that was developing shortly before 10 p.m. EST. _______ UPDATE (1:59 a.m. EST): The midpoint bounce we were expecting came at 10:00 p.m. from a single tick above the 29.045 pivot, so officially –and by a hair — we did nothing. The 15-cent rally that ensued would have more than covered the three-tick stop-loss, but it was not to be. The futures subsequently relapsed to a so-far low tonight of 29.010, but there was no reason to have looked for ‘camo’ opportunities, since that number is Nowheresville relative to the 28.785 ‘D’ target tied to the one-off ‘A’ shown (though not labeled) in the chart.
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.