A recent story in the WSJ described how shifting its 85,000 employees to a high-deductible medical plan has had a negative impact on one of GE’s core businesses: medical imaging. Employees are getting far fewer scans because their out-of-pocket costs are so much higher, with a material effect on imaging-equipment sales. But not on the stock, evidently, since it is up 50% since January. We can attempt to short it nonetheless because the rally is approaching a fetching Hidden Pivot target at 23.70. Accordingly, and just for the hell of it, I’ll suggest getting short by buying four Nov 23 puts if the stock gets within 2 cents of the target. Stop yourself out if GE subsequently trades for 23.82 or more. I’ll update my guidance if this order fills, so check back intraday if warranted. ______ UPDATE (September 28, 1:20 a.m. EDT): I’m still in love with the idea of shorting the stock at 23.70 target, notwithstanding the viciousness of yesterday’s short squeeze. There are some changes in my instructions, however: 1) Raise the stop-loss to 24.20; and, 2) buy Nov 24 puts instead of Nov 23 puts. My guess is that they’ll be selling for around 0.80 with GE at or near the target. ________ UPDATE (October 11, 3:29 a.m. EDT): Like a whole bunch of other important stocks that have turned lower without having quite reached their respective Hidden Pivot rally targets, GE’s latest rally has failed 52 cents shy of where we’d hoped to short the bejeezus out of it. The bearish implications would be compounded with a print over the next two days beneath the 22.07 low recorded on September 26.
Comments on this entry are closed.
Click here for a special deal for graduates of the Hidden Pivot Course who want to stay on the cutting edge
The consistent accuracy of Rick Ackerman’s forecasts is well known in the trading world, where his Hidden Pivot Method has achieved cult status. Rick’s proprietary trading/forecasting system is easy to learn, probably because he majored in English, not rocket science. Just one simple but powerful trick -- managing the risk of an ongoing trade with stop-losses based on ‘impulse legs’ – can be grasped in three minutes and put to profitable use immediately. Quite a few of his students will tell you that using ‘impulsive stops’ has paid for the course many times over.
Another secret Rick will share with you, “camouflage trading,” takes more time to master, but once you get the hang of it trading will never be the same. The technique entails identifying ultra-low-risk trade set-ups on, say, the one-minute bar chart, and then initiating trades in places where competition tends to be thin.
Most important of all, Rick will teach you how to develop market instincts (aka “horse sense”) by observing the markets each day from the fixed vantage point that only a rigorously disciplined trading system can provide.
The three-hour Hidden Pivot Course is offered live each month. If it’s more convenient, you can take it in recorded form at your leisure, as many times as you like. The course fee includes “live” trading sessions (as opposed to hypothetical ‘chalk-talk’) every Wednesday morning, access to hundreds of recorded hours of tutorial sessions, and access to an online library that will help you achieve black-belt mastery of Hidden Pivot trading techniques.
The next webinar will be held on Thursday, October 6. Click below to register or get more information.
This 9-minute video explains Rick's trading and forcasting method.
Rick takes requests on ACAD,GDX,CXRX,SPX,FFMGF,FNV,GCQ6,SSPXFDNCVF,TLT,VVR and AG
(July 18, 2016)
Why Today’s Bullion Rally Is Encouraging
Kanye’s Wall Street Doppelgänger
Ready to Have Your Expectations Managed?
DaBoyz Shamelessly Keep Their Cool
Who’s More Spooked: Bulls or Bears?
A Shaky Close on Wall Street
Stock Market May Have Bigger Worries than Fed Policy
A Bear Market — or Just ‘Chop’?
The Real Reason Stocks Plunged on Friday
Echoes of Professor Irving Fisher