Tuesday, February 21, 2012

DaBoyz are having difficulty sustaining altitude following Sunday night's brazen short squeeze, but my hunch is that they'll get help when stocks open to whatever fabulously bullish spin is imparted to the latest bailout news from euroland.

I've set a screen alert at 34.065, since a print at that price could help extricate the futures from the rut in which they have been dithering for nearly a month. Notice that a rally touching that number will have exceeded no fewer than three 'external' peaks, smoothing the way for bulls to trample and mangle the bad guys for a change. They'd still need to close above 34.140 for two consecutive days to clinch it, however. That's a midpoint Hidden Pivot, and it is associated with a 'D' target at 35.635.

The gold market has been consolidating for about four weeks now, and it will signal its intentions with a print in the April futures either below 1706.00 or above 1769.70.  The futures have impulsed upward on the hourly chart in the early morning hours of Tuesday, and we should watch for a pullback to begin around 1746.30, which is the "D" target of a pattern whose midpoint resisted the market's advances more than once on Monday.  Between here and the 1769.70 trigger level, there is a midpoint pivot of a larger pattern at 1763.20 which should not be overlooked.  At the moment there are no downside targets worth considering, but that does not mean that the usual gold sellers won't push the market to a low during the morning hours, as they have done so many times in recent weeks.  (Posted by Doug "harry" McLagan)

The market's evil masters are evidently intent on driving this vehicle to at least 1390.50, the 'D' target of the pattern shown. Barring the emergence of some truly catastrophic geopolitical event, the rally at least to the Hidden Pivot would appear to be all but certain, since abbreviated holiday trading has effortlessly (and volume-lessly, as always) gapped the futures through the target's 1362.35 midpoint resistance.  Alleged 'news' concerning Greece is invariably the catalyst for these fortnightly short squeezes, although even cynics might not have imagined that so much yardage could be squeezed from a crisis that is beyond remedy. Click here for details concerning the upcoming Hidden Pivot Webinar, where you can learn enough in just six weeks to kiss your guru goodbye forever.