April Gold and the E-Mini S&Ps appear to be roughly in synch Wednesday night, but neither is doing much. Check out today's tout for Silver Wheaton if you've been waiting for a spot to enter or augment a long-term position.
Thursday, February 9, 2012
SLW – Silver Wheaton (Last:35.93)
– Posted in: Current Touts Rick's PicksI was looking for a correction down to as low as 34.83, a Hidden Pivot, but bears haven't been up to the task, at least not so far. We can relax a bit for now, setting screen alerts at the upper and lower thresholds shown in the chart. The lie, respectively, at 36.93 and 35.04. A 'B-C' pullback from just above the first number could provide an excellent 'camo' opportunity to get long, so I've set a screen alert to warn me if it happens.
SIH12 – March Silver (Last:33.900)
– Posted in: Current Touts Free Rick's PicksSilver's choppy price action over the last three weeks has eaten way probably no more than half of the hefty supply deposited on the charts during the first half of November. You can see how tired it looks, the moreso because the last few upthrusts have done nothing to refresh the bullish impulsiveness of the larger intradays. That would take a stab to 34.690 on the next effort, but failing that, the yellow warning flag is due to be unfurled. (Click here to learn more about the Hidden Pivot Method we used to forecast and trade futures and stocks.)
GCJ12 – April Gold (Last:1731.20)
– Posted in: Current Touts Rick's PicksA Hidden Pivot correction target at 1702.00 is still in play, although the bad guys seem to be having difficulty pushing the futures down to such bargain levels. Their efforts left more crud on the intraday charts than we should care to ponder. However, I'll suggest nonetheless that you use two lesser targets at, respectively, 1724.10 and 1711.50 to gauge the strength of the downtrend if it persists. Either of those Hidden Pivots can be bottom-fished with 'camouflage,' but you'll need to be alert if the futures turn from the higher number, a 'p' midpoint, since the 'X' entry trigger that follows could come up very quickly. Alternatively, if bulls are going to come out on top today, they'll need to exceed 1737.70, a small but important 'external' peak along the wall of yesterday's decline.
BAC – Bank of America (Last:8.19)
– Posted in: Current Touts Rick's PicksWe bought two March 9 puts for 1.10 yesterday when the stock popped to a high seven cents above our 8.08 Hidden Pivot target. The fact that BAC finished slightly above the target is not encouraging, but we'll stick with the 0.95 stop-loss on the puts nonetheless. Our goal if B of A now drops as we'd expected is to spread off our premium risk by shorting puts of a lower strike. For now, though, do nothing further. If the rally continues, the nearest minor Hidden Pivot with stopping power lies at 8.27. The puts might be trading for around 0.91 at that point, but there's no reason for us to double down by getting in the path of a runaway freight train. _______ UPDATE (11:12 a.m. EST): DaBoyz opened the stock on a 19-cent gap, allowing their esteemed colleagues in the options pits to do likewise with puts. Ours fetched 0.87, giving us a loss on two contracts of $46 plus commissions. Their quasi-criminal work accomplished, DaBoyz have allowed BAC to detumesce, and the puts we'd held have move back up to 1.00. We won't try to intercept the stock again -- other, perhaps, than by camouflage -- because its easy moves through distinct Hidden Pivots are warning that those who make their living manipulating this stock, and who presumably are distributing it heavily into this rally, have bigger plans.