Wednesday, April 3, 2013

Could You Use an Extra $60,000?

– Posted in: Tutorials

The E-Mini S&P’s bigger charts were in limbo when we dropped in on them on this morning looking for a ‘camouflage’ trade. We found it in the form of a minor short that was good for a fleeting ride. This was just little stuff – the sort of thing a trader could find even on a slow day. But as you’ll see, just one of these “little” trades per day would add up to $60,000 of extra income per year.

SIK13 – May Silver (Last:24.495)

– Posted in: Current Touts Rick's Picks

May Silver looks bound for a minimum 25.460, or 24.925 if any lower.  These projections aren't rocket science, since the patterns I've used (bracketing two pairs of AB coordinates) to project the targets look too clear and compelling to be mistaken. ________ UPDATE (April 15, 12:20 a.m. EDT):  A powerful wave of selling Sunday night has pushed the futures down to a so far low of 24.080, bringing into play the 21.647 target shown. If it gives way, the lower B-C pair (26.419/35.300) would yield a worst-case bear-market low of 18.599.

Ugly New Targets in Comex Silver

– Posted in: Free Rick's Picks

Traders should check out updates to today's touts, since a couple of them are tradable. Caterpillar's spectacular swoon narrowly stranded a longstanding bid we had in at 84.21, but I'm game to try again after the hysteria has ebbed.  There is bad news for Silver bulls in today's forecast for the May Comex contract. I had promised to update only if the futures did something either very bad or very good.

CAT – Caterpillar Inc (Last:84.87)

– Posted in: Current Touts Rick's Picks

We've had our eye on a correction target at 84.16 that's been six weeks in coming, but yesterday's swoon-induced low at 84.45 wasn't quite close enough to get us aboard via the straight bid I'd advised at 84.21.  Nor would camouflage have sufficed, since even on the one-minute chart, the trampoline bounce off the low was too steep and violent to create any handholds. Shorts will have been scared to half to death, and so we shouldn't look for the stock to return to our target level any time soon.  In any case, we'll bide our time and perhaps try to get long, even if at a higher price, when the stock quiets down.

GDXJ – Junior Gold Miner ETF (Last:15.68)

– Posted in: Current Touts Rick's Picks

The decision to scratch our long position last week at 16.24 has proven timely, since the stock has once again disappointed with a vengeance. If there was a telltale, it was the chicken-hearted failure, by two cents, of March 21's recovery high to surpass the small peak at 17.22 recorded five weeks earlier (see inset). A worrisome sign initially, the threat became 'actualized' by the subsequent creation of a bearish impulse leg on the hourly chart three days later. We'll keep trying, since someday this vehicle will be worth its weight in gold.  For now, though, we'll let it sink down to new multiyear lows below $15 before we go bottom-fishing.

GCM13 – June Gold (Last:1576.600)

– Posted in: Current Touts Free Rick's Picks

At yesterday's lows, the futures kissed an important trendline we've been monitoring for quite some time. As noted in my latest commentary, a decisive breach would send the April contract down to at least 1553.30, a Hidden Pivot, or to 1487.00 if any lower.  (Note: This tout introduces the June chart, with equivalent supports at, respectively, 1551.90 and 1487.90). Camouflage tactics can give us an edge here trading speculatively from either side of the market, since in our way of looking at such things, fear and panic register only as bullish or bearish impulse legs.  I'll suggest looking for your opportunities on the 15-minute chart or less, although it might take a day or two to create some choice 'external' peaks to leverage. As things stand, on the hourly chart, yesterday's downdraft left a cragless wall with no good handholds. Click here for information about the upcoming Hidden Pivot Webinar.