It’s a sad time for America when a firm that does what Facebook does is on track to become one of our largest companies. Based on capitalization, the web-based lubricator of social interaction could be in the top 50 within a few years, or even in the top 25 if analysts’ wildest expectations pan out. Facebook’s IPO promises to top Google’s $27 billion offering, reaping early backers a giant windfall. But wouldn’t it be far better if a company that actually made something were to enjoy such extravagant enthusiasm on Wall Street? Facebook of course makes nothing, and what it sells is of little economic value to anyone. And yet its founder, Mark Zuckerberg, is about to become one of the wealthiest men in the world. » Read the full article
Price action early Tuesday morning was so tired that it looked almost incapable of generating any heat unless sparked by some sensational piece of news overnight. Unfortunately for traders, as of around 2:40 a.m. EST, the child-molesting teachers at an L.A. school were holding the top spot above-the-fold.
Gold’s downtrend stalled yesterday between two minor, bearish Hidden Pivots, but not before the June contract had taken out three more external lows. This is discouraging action for the near term, and it suggests the 1702.00 target given here earlier remains a good place to look for a tradable low. Alternatively, we can set the bar at 1747.50 (see inset) today to signal a meaningful resurgence of bulls. ______ UPDATE (2:33 p.m. EST): The April contract has rallied nearly $40 from this morning’s fake-out low, creating a bullish impulse leg on the hourly chart. Now, assuming 1752.60 holds as ‘B’ of the current impulse leg, Gold will need to pull back by at least $12.50 (0.625 of $20 k-A segment) to be considered fully re-charged for a C-D follow-through leg of as much as $40.
I’ve been hell-of-bullish on Treasury Bonds for quite a while, but a subscriber asked me yesterday whether there was a price at which I would short them. In fact, there are some major targets above where both T-Bond futures and this ETF vehicle would become enticing shorts. Specifically, I am using a 164^08 projection for T-Bond futures that lies 8.6% above the current 151^04; and in TLT, a 145.25 target that is 6.8% above current levels. Despite the discrepancy, I will treat each separately for trading purposes. and I’m also sticking with a 1.74% forecast for long-term interest rates. That projection is based on the long-term T-Bond chart itself, not on a derivative instrument such as TLT or TLH. For your further trading guidance, let me repeat that I expect both TLT and TLH to pull back when the former hits 138.42, a Hidden Pivot resistance of intermediate importance that could be achieved within the next few days.
I first recommended this stock in early September after being very impressed with a presentation by its CEO, Atul Sabharwal. The company provides mobile marketing solutions to a growing list of clients that includes Wal-Mart, ESPN, Lexus, Taco Bell, Target, Johnson & Johnson and Minute Maid. Snipp’s shares are listed on the Toronto Venture Exchange (TSX: SPN) and on the OTC in the U.S. (symbol: SNIPF), but yesterday it filed with the SEC for an exchange listing in the U.S. From a technical standpoint, SNIPF looks to be basing for a move to as high as 0.4385. First, though, it would need to trip a buy signal at 0.2878, then to clear the 0.3380 midpoint pivot (see inset). The company continues to win new business at a rapid clip, and that’s why I expect the earnings report due out November 15 to be strong. Full disclosure: I hold shares and warrants in this company. _______ UPDATE (November 13, 10:49 a.m. EST): Two days ahead of the earnings report, the stock has taken quite a leap, with an opening bar high today at 0.38 that was 36% above yesterday’s close. This means the 0.4385 target flagged above is well in play. _______ UPDATE (6:49 p.m.): The stock took a leap Thursday back up to the midpoint pivot at 0.3380 associated with the 0.4385 target. Regarding earnings, they will be out later than expected, in line with the Canadian deadline for filing. Stay tuned. _______ UPDATE (November 17): Snipp has reported 252% earnings growth for Q3. Click here for the company’s latest filing. _______ UPDATE (December 5, 10:13 a.m.): Zounds! The stock has popped to 0.40, quadrupling in the eight months since I first recommended it. My immediate target is 0.4356, but SNIPF will need some rest if and when it gets there. _______ UPDATE (December 9): Bulls are apt to be a little winded after the recent push to 0.4314, less than a penny shy of the target shown. We’ll give the stock time to consolidate for the next thrust. ______ UPDATE (December 10, 6:12 p.m.): With the broad averages plummeting yesterday, Snipp bucked the tide, hitting a new all-time high at 44.10. This opens a path over the near term to 0.4906, or perhaps 0.5193 if any higher. ______ UPDATE (January 5): The stock vaulted to 0.59 Friday on volume 250% of a daily average of about 400,000 shares. _______ UPDATE (January 18, 9:57 p.m.): SNIPF got hammered at its recent high of 0.60, with more than a million shares changing hands near the top. Volume on the pullback has been relatively light, however, and I expect buyers to turn the old high into support once they push past the old high in the months ahead. The company continues to win new business with an impressive and rapidly growing list of blue-chip clients. For a summary of client names, check out their logos by clicking here.