Subscribers keen on harnessing this vehicle for fun and profit shouldn't be scared off just because the uptrend is so well developed. For sure, the futures are going to be quite devious at this stage of the rally. But because we have two bullish targets to leverage, it behooves us to find a way in. I've reproduced a chart that shows the kind of subtlety that can get us aboard with very little risk. Like most attractive camouflage trades, this one began with a move to a 'D' correction target nicely visible on the five-minute chart. However, the countertrend pattern of lesser degree that followed the upturn was where we might have looked for opportunity, and in this case it was absolute, stress-free perfection.
Tuesday, March 19, 2013
Check Out Trade Updates
– Posted in: Free Rick's PicksBe sure to check out updates in the touts section of today's newsletter, since we adjusted positions yesterday in GDXJ and Best Buy. I also put out a bullish trade recommendation for Goldman Sachs that includes extensive instructions for acquiring the July 195-200-205 butterfly spread. We're trying to leg it on at no cost to yield the kind of odds we can all live with. Click here to sample Rick's Picks free for a week.
HYG – Junk Bond ETF (Last:94.40)
– Posted in: Current Touts Free Rick's PicksThis junk-bond vehicle begs to be shorted, but how? It would take one last push to get it to the 96.09 target shown, but there are reasons to doubt it will ever get there. Since hope springs eternal, we'll simply have to give it more time. It will be difficult in any case to find bearish leverage in butterfly spreads, as we frequently do, because put and call options other than near-the-moneys barely trade. I've set a screen alert at 95.00 to wake me if the opportunity should ripen. _______ UPDATE (April 8): This vehicle has dropped into an impulsively bearish pattern, so we'll put aside our effort to short a spike high.
Street Just Yawns at Europe’s Latest Crisis
– Posted in: Commentary for the Week of March 8 FreeGoldman Sachs called the Cyprus bank bailout a big deal, according to someone who posted in the Rick’s Picks chat room yesterday morning. Whether true or not, as far as Wall Street is concerned the bailout and the punitive measures it will bring against depositors barely even merited a yawn. The Dow Industrials fell a meaningless 62 points yesterday in response to the news. The close was up sharply from overnight lows that equated to a 180-point drop in the blue chip average. We were braced for a 250-point plunge ourselves, but buyers came after index futures so aggressively early Monday morning that it seemed a foregone conclusion that they were treating Cyprus’ banking problems not as a crisis, but as an opportunity to gorge themselves on stocks at temporarily reduced prices. We editorialized yesterday about how the bailout, by slapping a tax of 6% to 10% on depositors, was setting a bad precedent that could send European deposits scurrying for the ostensible safety of U.S. Treasurys and even gold. Both got a small pop, but certainly not enough of one to suggest investors are the least bit spooked. T-Bond futures rallied about three-quarters of a point while Comex April Gold rose $12. It wasn’t urgent buying that pushed bullion higher, but rather the vague feeling that the crime syndicate that holds gold prices down had simply pulled their offers and were allowing quotes to drift, unmolested, as high as the news was going to take them. Old News Meanwhile, the airwaves were filled with reports critical of Europe’s (i.e., Germany’s) decision to squeeze $7.8 billion from depositors to unlock emergency loans. A Washington Post story, Markets Drop Amid Euro-Crisis Fears over Cyprus Bailout, led Google’s news page for a couple of hours, but it was already yesterday’s news when
