Friday, February 24, 2012

Silver buyers should be spent for at least a day or two, but if not, there could be a low-risk opportunity to get on board using Hidden Pivot midpoint supports and 'D' targets of minor retracements. I've sketched out two such possibilities in the chart that accompanies today's tout for April Silver, and I'd encourage night owls in particular who are looking for action to check them out.

Following yesterday's powerful rally to within two-and-a-half cents of our target (35.635), the futures have pulled back, although not by much. Now, the sooner bulls are able to push this vehicle through the target, the more buying power we should infer remains to be spent. Crude oil's explosive rally is a wild card here, since it has been driving bullion prices higher.  Camouflageurs and night owls looking for a way in should focus on the p and D Hidden Pivot supports of minor retracements such as the two shown in the chart.

The ballistic move yesterday through the 1763.55 midpoint resistance shown in the chart all but guarantees that its 'D' sibling at 1820.40 will be reached.  The rally is too far advanced to offer easy camouflage, but it is tradable nonetheless if you initiate your 'buy' via a timed buy-stop.  This implies giving the trade perhaps 30-60 seconds to move decisively in your favor after you're on board. If you are not quickly profitable, you can bail out at your discretion -- presumably with little or nothing lost.

DaBoyz were back to their old, sleazy selves Thursday evening, mercilessly short-squeezing the futures on near-zero volume and a feel-good headline concerning the big story of the day -- National Enquirer's photos of Whitney Houston lying in state, as it were.  As we went to press, this phony-but-all-too-real rally has gotten within three ticks of the 1367.75 midpoint resistance shown in the chart. As always, we should infer that once this Hidden Pivot has been decisively breached, that will signal further progress to its 'D' sibling -- in this case, 1385.25.  On the chart, I've identified a series of lesser external peaks, a B-C pullback from above any of which could yield a camouflaged opportunity to get long. Night owls looking for action should pay close heed, since any trade is likely to trigger in the off-hours. Would you like to learn how we use the ‘camouflage’ trading technique to significantly reduce entry risk? Click here for details.

[Blogger Robert Moore is a frequent contributor to the Rick’s Picks forum and the author of some of the more provocative guest commentaries we’ve published.  In the essay below, he deconstructs talk by high-level bankers about offering savers a negative rate of return on Treasury Bills.  Robert also explains why, for Baby Boomers in particular, this could have dire consequences. RA] Well, it’s official: The U.S. government is thinking about becoming a predatory lender. On February 1, the Treasury Borrowing Advisory Committee -- a symposium composed mainly of representatives of the cabal of large U.S. banks that are referred to as “Primary Dealers” in Treasury auction-speak -- tabled the following, seemingly innocuous, little tidbit: “The question was asked if it made sense for Treasury to permit bids and awards at negative interest rates in marketable Treasury bill auctions. [A Treasury employee] noted that there were operational issues associated with such a rule change, but that the hurdles were not insurmountable.” The Primary Dealers are asking the Treasury if there is a way to allow people to bid more for a Treasury Security than the cash value of the security at maturity. For example, bidding $105 for a Treasury Bill that you know will be redeemable for only $100 from the Treasury at maturity. Many financial newsletter writers and mainstream media analysts will probably infer from this development that the market expectation is for more future deflation (declining money supplies and therefore decreasing general price levels), while traders will salivate at the prospect of higher speculative gains to be made on T-Bills that can be unloaded later at higher prices when the “greater fool” comes along. But what would this development mean for the individual long-term investor (aka “the greater fool”)?  It would mean, very simply, that they would be agreeing