Friday, January 25, 2013

Yeah, the mining stocks look like hell. Again. But that doesn't mean we can't attempt some judicious bottom-fishing in an erstwhile favorite vehicle of our, GDX, the Gold miners ETF. Check out today's tout for detailed instructions.

A downside target at 36.42 beckons, although it is by no means ordained. Notice that the first attempt to put this vehicle away failed, resulting in the creation of a higher point 'C' high. That weakens the bearish case, although the weight of the pattern shown is sufficient to tip the argument their way for now. We can try bottom-fishing nonetheless with a 42.44 bid for 400 shares, stop 42.39.  This gambit is based on the 42.42 target of the pattern (on the 15-minute chart) A=47.53,  (Jan 2 at 10:15 a.m. EST); B=43.99 (Jan 8 at 10 a.m); C=45.96. _______ UPDATE (10:55 a.m. EST):  The stock crushed the support on its way to a so-far low of 42.03, making an eventual fall to 36.42 more likely.  Our trading loss on this speculation was minimal -- $20 theoretical plus commissions. You can learn how to do this stuff yourself. No kidding. Click here.

(The guru who takes a victory lap invites the market gods to smite him with a bolt of lightning. Even so, because things have worked out very precisely for a recent forecast drum-rolled here, I am airing yesterday's commentary for a second day.  In after-hours trading Thursday evening, Apple shares had dipped down to a so-far low of 447.36 -- exactly 19 cents from the 447.55 target disseminated to subscribers a week ago when AAPL was trading above $500 and rising. Battered and bloodied bulls should cross their fingers, however, since any further, decisive slippage beneath the targeted low would imply that Apple could grope its way down to 438.66 in search of better traction. Originally, Rick's Picks had told subscribers to back up the truck and buy shares aggressively if AAPL did indeed fall to $447.55. However, because this "Hidden Pivot" target has in fact been hit outside of regular hours, we are now suggesting that any buying be done either with a very tight stop-loss (i.e. 36 cents or less) or via a "camouflage" entry technique well known to those who have taken the trading course we offer from time to time. Click here for detailed information about the upcoming March webinar. RA] We had been looking for Apple to fall to at least $461, or to $447 if any lower -- a correction of about 37% from September's all-time high of $705. Last week, however, with the stock in the throes of a deftly engineered rebound after having gone no lower than $483, we moved to the sidelines. As we explained in a headline at the time, We'll Sit Out the Short Squeeze. And so we did, as Apple climbed to a recovery peak of $528 in off-hours trading yesterday afternoon.  That peak proved fleeting, however, to