Tuesday, August 7, 2012

Because the 150^05 midpoint support of the bearish pattern shown has been decisively breached, we should infer that more weakness impends, presumably to the 148^06 (148-6/32) D target. That Hidden Pivot lies within a thicket of structural support from lows made in June, and although it's possible their effect on the futures will overshadow our pivot, we can still try bottom-fishing there.  Accordingly, once this vehicle has come down to perhaps 148^09,  I'll suggest taking the entry trigger of the first northbound abc on the 5-minute chart.  [You can learn to trade via 'camouflage' yourself, a technique that will enable you to reduce the entry risk of a trade to a low threshold that you may not have believed possible. Click here for details concerning the upcoming Hidden Pivot Webinar in September (and a $50 discount coupon if you register now].

The futures slithered somewhat closer to a 1404.00 target, recording an intraday high at 1395.75.  Although the target remains valid, it has become too boring at this point to care about. Another at 1409.00 now looks downright tradable, however, and so I'll suggest shorting there either via camouflage or with a stop-loss no wider that 1410.25.  The chart shows how compelling this Hidden Pivot is, but also how it too, like 1404.00, would start to lose its appeal if the futures take too long getting there. For that reason, I am making this trade recommendation good for today only. If 1409.00 is achieved it would imply an approximately 150-point rally in the Dow.

[From sun-drenched Spain, here’s a dispatch from ‘Buster,’ an occasional contributor to the Rick’s Picks forum.  Much as Buster loves the warm climate of Spain, the economic and political climate have grown so frigid that he’s thinking about moving to…Iceland. The country is becoming a very appealing place to live, says Buster, because it has taken to heart lessons learned from the banking collapse of 2008. RA] Sunny Spain…or Iceland? Many may mistakenly think of Spain as a comparatively less developed nation, since it emerged from the Franco era only relatively recently. However, Spain could actually be seen as a more advanced model of where we are all heading. The story goes that, as part of Spain’s acceptance into the world order of things, her administrators spent some time visiting and learning from the dark tax overlords of various countries to get up to speed in the modern methods available for wealth extraction and bureaucratic empire building. Today, many of the consequences of their diligent hard work are abundantly clear. A quick scan of the news over the past year will supply a list of corruption allegations against many of the past administrators, with the burdens that they lay still continuing to stifle prosperity, and thousands losing their homes to the banks, and record numbers unable to pay their property taxes. Further, a visit to Spain may seem to some like entering a cross between the Third Reich and the People’s Republic of China, since nearly all activity will involve some bureaucrat demanding the equivalent of  “Papiere, bitte!” with a quick “No possible” or worse still, a fine or penalty when one is unable to supply the correct one;  plus seeing so many Spanish shops being turned into a Chinese bazaar. This is due to Spain’s government having given Chinese