Wednesday, May 2, 2012

Night owls should follow the plan sketched in the chart (see inset) to get long.  This instruction is more explicit than usual for a tout 'overnighter,' but in this case the breakout peak at 1663.90 looks subtle enough to be used successfully.  Entry should be on four contracts, but only if the point 'B' high is no higher than 1664.10.  Be sure to take profits on 50% of  the position at 'p' if the opportunity arises, since we don't want to take any  undue risks ahead of the obligatory Asian-market pummeling.

I've highlighted the Dow's breakout this week in Wednesday's touts.  The good news -- for permabears, that is -- is that there could be a shortable opportunity not far above. The precise target is shown in the chart that accompanies the DJIA tout, and even if it shows little stopping power, that in itself could provide valuable intelligence for our analytical efforts. ### Win a Subscription Worth $106! If you aren’t already receiving Rick's Picks' daily commentaries by e-mail, sign up now and you’ll be automatically entered in a weekly drawing to win a three-month subscription worth $106.  Click here to register. What do paying subscribers get that lurkers don’t?  Plenty, including detailed daily trading “touts” and access to a 24/7 chat room that draws traders from around the world.

If permabears were hoping that the ups and downs since mid-March have been a last-hurrah distribution, they should ponder the Indoo chart I've included with this tout. This week's breakout above all previous recovery highs puts the blue chip average on course for a run-up to at least 13478, a 'D' target that lies about 1.4% above current levels.  Aggressive shorts -- very tightly stopped, as is our practice -- will be warranted at those levels, but probably not before. Stay tuned.

One fleeting, hysterical short-squeeze at a time, the futures are working their way toward the 1439.50 rally target first broached here a while back.  Getting long will understandably be a bitch; but short, maybe not so difficult.  Notice that, for all the hubris and hoopla surrounding these rallies, they are actually enslaved to the cosmic order from which Hidden Pivots are derived.  In that regard, see for yourself how yesterday's rally precisely achieved the 1411.75 target of the pattern shown -- not one tick more, nor one tick less. Rather be a trader than a lurker? Click here to learn how.

'Sultan Knish,' aka blogger Daniel Greenfield, is consistently one of the best reads on the web. Although his essays usually focus on the geopolitical sphere, particularly the Middle East, his latest is a powerful indictment of a Government that would seek to impoverish and enslave us by creating artificial shortages of all things.  As he notes, "The modern...empire is dependent for its power on manufactured shortages."  To read the complete essay, click here.

[This commentary has elicited such a spirited discussion, including ruminations on the inflation/deflation conundrum, that I'm letting it run for a second day. RA] Are gold and the bloodied mining stocks at an important turning point?  So it would appear. Persuasive evidence of this came together for us yesterday after we ran into an old friend, a real estate developer with a commodity-trading jones, who asked whether it might finally be time to buy the stuff.  “Buy it?” we replied.  “We’ve been trying for a week to buy anything gold-related but it’s like trying to catch a jackrabbit.” Hmmm. Is gold trying to tell us something?  Signs had been accumulating. When we turned in late Sunday night, we felt comfortable with a futures “tracking” position in gold acquired near Friday’s lows. Using a Hidden Pivot “camouflage” strategy, several subscribers reported buying the Comex June contract for around 1654.30, based on a playbook sketch accompanying Friday’s trading touts.  Later in the day, with gold in a strong rally, we advised taking partial profits that would have reduced the theoretical cost basis of the position to 1641.50.  With the futures trade near 1665.00 Sunday night, how could we lose?  We advised subscribers to use a 1649.10 stop-loss for what remained of the position. The chart above tells what happened next. Although June Gold was practically unchanged as we went to press Monday night, an intervening swoon of $40 -- $20 down, then $20 up – had taken us out on the stop-loss Monday morning, as it must have many other traders who fancied themselves sitting pretty Sunday night.  Now the task of climbing back on board will be doubly difficult, since gold is taking increasingly radical evasive maneuvers to disabuse its growing fan club of the notion that it will be easy