Monday, February 13, 2012

Friday's shakedown was sufficiently vicious to imply that Silver Wheaton's handlers were keen on buying the stock. If the trampoline bounce they engineered from the low goes just a tad farther this morning, surpassing a minor external peak at 35.67 (see inset), bulls will be on their way to rejuvenating a larger, bullish pattern with a midpoint resistance at 37.515 that would become our minimum upside objective. _______ UPDATE (11:04 a.m. EST): This morning's sleazy, quasi-criminal head-fake winds up being constructive, because it created the bullish impulse leg and 36.60 target on which the stock is currently working. P=35.95 here, and it'll need to be surpassed before I can "guarantee" you that D will be reached

The euro's daily chart looks more bullish than the dollar's at the moment, implying that Greece's latest resuscitation will pass muster where it matters most -- i.e., in the make-believe world of global finance. Even so, the futures can't afford to stall for more than a few days lest they lose the considerable momentum that will be needed to surmount the 1.3296 'external' peak recorded on December 8.  That's what it will take to refresh the bullish impulsiveness of the daily chart and to sustain the illusion that Europe is somehow muddling through its debt crisis. Click here for details concerning the upcoming Hidden Pivot Webinar, where you can learn to do this stuff yourself.

April gold was through the midpoint resistance shown, strongly favoring more upside over the very near term to its 'D' sibling at 1737.10, at least.  Notice that a precise hit would fall two ticks shy of exceeding the peak recorded on Thursday just before the futures began to fall. That peak will need to be exceeded to refresh the bullish energy of the lesser charts, but it seems unlikely the futures would come that far only to fail at the task.  The bigger picture remains bullish because the last surge exceeded a challenging external peak at 1763.00 from December 8.

The 1353.00 target precisely contained the most recent short squeeze, but if it gives way today or tomorrow, that would suggest that there is plenty of buying power remaining to be spent.  The next logical stop would be a Hidden Pivot at 1362.50 noted here earlier, and although it will offer a promising spot to try getting short, camouflage tactics should be used to initiate the trade, since the target comes from an imperfect pattern on the weekly chart.  In the meantime, as of late Sunday night there didn't appear to be any good handholds for getting long, even on the lesser charts, because of the gap-up opening that began the session.

The euro's chart looks more bullish than the U.S. dollar's at the moment, suggesting that the latest deal to keep Greece afloat has passed muster with the global banking establishment.  Index futures are up as well, but only by enough -- six points -- to imply DaBoyz are more interested in distributing stocks than buying them tonight. See you in the morning!

This impromptu session from Thursday morning runs a little more than an hour, touching on B of A, the E-mini S&Ps and Comex gold. But of greatest interest, perhaps, in the final 15 minutes, is a detailed (and bullish) look at the HUI Gold Bugs Index. My suggestion is to fast-forward to this segment (unless you’re interested in the real-time ‘camo’ portion related to other vehicles).