Monday, May 6, 2013

DJIA – Dow Industrial Average (Last:)

– Posted in: Current Touts Rick's Picks

The Dow blew past a 14897 target last week, obliging us to find another. I'll suggest using the 15193 Hidden Pivot shown, although the blue chip average hasn't yet closed above another at 14969 that comes from the weekly chart (A=10404 on 10/7/11; B=13339 on 5/4/12).  If and when that occurs, 15193 will become an odds-on bet as a minimum upside objective.  However, the pattern from which it is derived is sufficiently clear and compelling that we should expect short-able stopping power to materialize thereupon.

DIA – Dow Industrials ETF (Last:149.41)

– Posted in: Current Touts Free Rick's Picks

The next rally target with short-able stopping power lies at exactly 155.30, and so I'd suggest buying four July 151 puts if and when this vehicle gets within 7 cents of the target. You should stop yourself out, however, if those puts trade for 0.15 less that what you paid for them.  Above Friday's high your bias should be bullish until the target is reached, since it will become my minimum upside objective above 149.82.

ESM13 – June E-Mini S&P (Last:1609.00)

– Posted in: Current Touts Rick's Picks

Once again, I am refraining from posting a key rally target that we plan to short in hopes that this will help reduce front-running.  To calculate the target yourself, use these coordinates from the 240-minute chart: A=1375.75 (12/28/12); and B= 1523.75.  Camouflage is advised if and when the opportunity arises, but if you take a lazy man's approach, I'd suggest using a single contract with a 1.00-point initial stop-loss. Keep in mind that any movement above Friday's high in the cash index would imply that your trading bias in this vehicle should be bullish until the target is reached.  Please note as well that a 1648 target in the former has an analog in this vehicle at 1647.50 (also very short-able: A=1476.25 on 2/25).  Check my Sunday post (16:26) for a further note.

S&Ps Near a Crucial Threshold

– Posted in: Free Rick's Picks

The S&P 500 is near a crucial threshold, and we still plan to use an E-Mini S&P target that I disseminated in the chat room to get short. However, because it conflicts somewhat with two rally targets I've flagged for the cash index, we'll need to pay close attention to each to determine how aggressively to position ourselves against the trend.  Today's DIA tout also contains advice for shorting, along with a chart that shows how Friday's high hit an important rally target precisely.

INX – S&P 500 (CME) (Last:1614.42)

– Posted in: Current Touts Rick's Picks

For purposes of getting short, we're using a target in the E-Mini S&Ps that lies just above Friday's record high.  However, the cash index achieved, and very slightly exceeded, an equivalent target at 1617.84, so we'll need to be ready to position ourselves via camouflage in the former.  Notice that extending a lesser, finishing-stroke abc yields an unachieved target at 1648.37. Rather than try to reconcile this with the E-Mini target, which is somewhat lower, we'll simply take both into account and let each inform our expectations for the other.