Friday, May 3, 2013

In the chat room yesterday we toyed with this stock, waiting to get short at a 713.29 target that went unachieved (see inset).  The stock dove from just beneath that number, denying us a juicy trade, but you should be starting to see that one needs just one or two these trades a week to make a pretty good living at it. We'll keep trying, with a new emphasis on weekly-expiration options whose appeal I had long overlooked. They are in fact perfectly suited to the Hidden Pivot's ability to nail swing highs and lows precisely.  If you want to get in on these trades the chat room is the place to be, since even the time it takes to send out an E-Mail Notification could spoil the opportunity.

The 1350.50 correction target I've flagged in June Gold -- a Hidden Pivot midpoint support -- has an equivalent at 21.360 in July Silver.  A rally above the 24.835 point 'C' of  the pattern would pre-empt that target, but until such time as that occurs, 21.360 makes a logical minimum downside objective for the near term. Alternatively, bulls would seize the edge for the near-term if they can rally above 24.345 today. That would open a path to 25.440, a D Hidden Pivot tied to midpoint resistance at 24.325.

Surprise, surprise. A single day of  moderate selling in the face of dismal economic news seems to have rejuvenated OPM-crazed buyers for yet another run-up to new record highs. Keep firmly in mind the rally target that I have refrained from publishing outside of the chat room. This tactic won't necessary prevent our getting front-run when we attempt to get short up there, but it might help thin out the crowd a little. As before, we will continue to guard against getting suckered if DaBoyz should spring a bull trap just above the 1594 Hidden Pivot threshold we've been focused on for many weeks and weeks.