Monday, May 21, 2012

The futures are up about $6 early Monday morning, but their failure, by $1.80, to achieve the 1598.80 target shown suggests they may be due for a rest.  However, the relatively short thrust it would take to surpass peaks #1 and #2 would change the picture -- hint, even, of a bullish stampede toward heavy resistance just above 1660.00.

Index futures and bullion have opened quietly Sunday evening, presumably because the scumbags who fade bids and offers at this especially opportune time of the week are uncertain about whom they are going to rip off, and how.  Their reticence suggests that retail customers (aka pigeons/marks) are themselves perhaps without clue, much less inspiration or fear.

The futures finished the week with a plunge to within 2.50 points of the 1287.25 target given here on Friday. I'll update Sunday night if they turn around, but otherwise I expect the target to be hit; and if exceeded, for yet another, a Hidden Pivot at 1257.25 associated with a larger, unorthodox pattern, to become magnetic.  Alternatively, it would take a print today at  1317.75 for bulls to regain their footing on the hourly chart (reproduced alongside to show the significance of this number).

Friday's robust thrust pushed the stock past no fewer than three prior peaks, two of them external. This is a very healthy sign, but also a possible set-up for a trading opportunity from the long side.  The chart I've reproduced shows that pullback to at least 24.15 would be needed to prime SLW for a follow-through thrust equal in magnitude to Friday's. Thereafter, using a chart and ABC pattern of 5-minute degree or less, Pivoteers should look to get long at the signaled 'X' of the larger pattern. The usual rules would apply from that point forward, including taking a partial profit at 'p'.  I'll establish a tracking position for your further guidance if at least two subscribers report in the chat room of having gotten aboard on the terms I've outlined.

Bulls did a creditable job lifting the Gold Bugs Index from the abyss last week, but they'll need just a little more push to get it past the 402.85 threshold where I'd said the hourly chart would trun decisively bullish. It'll take a bit more than that, however -- specifically, a rally exceeding 422.46 -- to achieve the same, salubrious effect on the daily chart.  The significance of these price points is shown in the inset.