This ostensibly "defensive" stock has been in the vanguard of institutional lunatic-fringe vehicles, but it's been a while since we looked in on it. An 88.06 target not far above could offer an excellent opportunity to pick the top by getting short. Camouflage is the method of choice, but if you want to try it the easy way, you can short 88.04, stop 88.17. ________ UPDATE (May 16, 3:39 a.m. EDT): Wednesday's energetic leap brought the stock to within 18 cents of the rally target noted above. Since JNJ looks to be in a shallow consolidation, I'll suggest extra caution if attempting to get short at the 88.06 target. Be alert to the possibility that Thursday's opening occurs above the target. _______ UPDATE (May 17, 4 p.m.): The stock streaked to the target in the closing minutes of Friday's session, peaking 14 cents above it at 88.20 before settling back slightly. I'll assume nothing done on the trade, since shorting at the final bell on a Friday is not exactly playing it extra-cautious as advised. If any subscribers report having gotten short, however, please let me know in the chat room and I'll establish a tracking position. The most risk-averse way to have attempted it would probably have been to have bought puts on the close. _______ UPDATE (May 18, 1:20 p.m.): There was not much interest in this trade in the chat room, presumably because it triggered in the final moments of Friday's session. But if you took it, I'd suggest risking no more than 0.20 per share, implying a stop-loss at 88.26._______ UPDATE (May 22, 9:53 a.m. EDT): Has Johnson & Johnson come up with a cure for cancer? The way Wall Street's best and brightest have been chasing this stock, that's what one might infer. Please note
Wednesday, May 15, 2013
Rising Dollar Could Pressure Bullion
– Posted in: Free Rick's PicksThe Dollar Index has triggered a bullish entry signal at 83.79 off a pattern much like the one accompanying Tuesday's tout. If it achieves its 84.62 target, expect bullion to remain under pressure over the near term.
GCM13 – June Gold (Last:1413.20)
– Posted in: Current Touts Free Rick's PicksA 1405.60 downside target noted here earlier is close to being achieved. Traders can try bottom-fishing there via camouflage, but if you'd prefer the lazy man's approach, a straight bid at 1405.60 can be used for a single contract, stop 1405.20. If the stop is hit, expect more downside to at least 1390.80, another Hidden Pivot support you can use to get long speculatively. ________ UPDATE (9:19 a.m. EDT): Gold turned higher from 1404.60, a point below our target. On the 1-minute chart, the first valid camo entry signal came at 1410.90 (9:02 a.m.), but the futures have turned surly since after failing to reach the pattern's 1413.40 target before dipping below 'C.' If you had done this trade by-the-book, you'd be out now with a small profit. _______ UPDATE (11:51 a.m.): Gold has relapsed to a so-far low at 1389.00, affirming an even lower, longstanding target at 1350. Regarding the relapse to the lower target given above, it was anticipated in the chat room via thefollowing post at 9:30 a.m.: My hunch is that Gold's nastiness [this morning] portends more slippage to 1390.80 over the near term.
ESM13 – June E-Mini S&P (Last:1646.00)
– Posted in: Current Touts Rick's PicksThe 1779.75 rally target mentioned in today's tout is shown in the accompanying chart. It is somewhat unconventional because of the elongated and well corrected impulse leg, but it can be justified nonetheless because after getting second wind, the rally exceeded a fresh 'external' peak at 1227.00 recorded in August 2008. There is also discernible hesitation at the p midpoint. Despite these bullish factors, the futures remain a speculative short from these levels provided the trade is initiated via camouflage. I'd suggest monitoring the 15-minute chart to qualify opportunities.
