Wednesday, December 26, 2012

Wall Street an Inch from Fiscal-Cliff Panic

– Posted in: Free Rick's Picks

It looks like bullish seasonality is about to get trashed in the final week of 2012. Monday's performance was abysmal for a Christmas Eve trading session, and Wall Street's mood is unlikely to improve with Obama off vacationing in Hawaii and fiscal-cliff fears an inch from erupting into panic. It'll be interesting to see how DaBoyz attempt to meet this challenge, since the stock they will be most keen to mark up, Apple, has been leaden.  Click here to get Rick's commentary and a detailed trading recommendation delivered free each day.

ESH13 – March E-Mini S&P (Last:1403.50)

– Posted in: Current Touts Free Rick's Picks

The 1405.25 target flagged here earlier is still my minimum downside objective for the near term as well as a good place to try bottom-fishing. You can do this with camouflage, or alternatively with a straight bid at 1405.50 and a three-tick stop-loss.  To view the chart associated with the target, check Friday's tout  in the archive, since nothing of substance has changed.  _______ UPDATE (December 26, 8:52 p.m. EST): Subsequent price action has lowered our correction target a tad, to 1403.50.  This new Hidden Pivot support can be traded as suggested above -- either via 'camouflage', or with a straight bid and three-tick stop-loss. _______ UPDATE December 27, 10:56 a.m. EST):  To paraphrase Lawrence Welk: suh-prize suh-prize!  The futures have bounced 4 points so far from a low at exactly 1403.50. Since I'd suggested a three-tick stop-loss off a straight bid, you should have exited half of an assumed four-contract position at 1406.50. For now, use a 1402.50 stop-loss for the rest. UPDATE (11:31 a.m.):  We exited the remaining two contracts on the stop for a theoretical trading gain of $200. The breach of the midpoint implies that the downtrend will continue at least to its 'D' sibling, 1378.50.