Friday, November 2, 2012

Silver Wheaton's breakout is most encouraging, especially since it has pushed our vertical call spreads, which we acquired for nothing, well into the black. Take note of today's SLW tout, however, since it provides the exact location of an obstacle that is likely to quell buyers, at least for a while.

A rare spate of negative press has extended Apple's decline, which yesterday exceeded the clear Hidden Pivot target of the pattern shown. This implies that the stock is likely to grope its way down to July's lows near 570 in search of traction. Alternatively, an unpaused thrust above two prior peaks on the hourly chart would not only provide evidence that the worst may be past, but a possible trading opportunity.  If it happens on my watch, I'll post trading advice in the chat room. If you want to receive this information in real time, be sure to check 'E-Mail Notifications' on the My Account page.

We're limited to day-trading now, enthralled to the coin-flip randomness of each session's price action. Thursday's close was bullish just the same, since it vaulted an external peak at 1421.75 recorded last Friday. The fact that the futures have spent 12 hours since then doing absolutely nothing does not portend an ebullient breakout today, but it should at least put traders in a bullish frame of mind. If the futures push above 1433.00, it will raise the obvious challenge of a further push to mid-October supply centered near 1458.