The 119.52 rally target first broached here a while back should have been a piece of cake, but Tesla has in fact been struggling to get there. However, yesterday's rally peaked just above a small 'external' peak at 104.26 recorded on 5/31, generating the first bullish impulse leg we've seen on the hourly chart in weeks. You can use this chart to orient yourself toward the new target at 120.42, but 'camo' risk avoidance when initiating a buy will best be found on charts of 15-minute degree or less. _______ UPDATE (June 19): DaScumballs who control this stock and who engineered May's spectacular short squeeze to distribute shares bought at much lower prices evidently are in accumulation mode once again. How else to explain the adroit timing of a story planted in The Wall Street Journal yesterday that described Tesla's troubles setting up a dealer network in states with laws that zealously guard car dealer monopolies? This story, played on the front page, could have been written at any point along the way of Tesla's vertical run-up. The fact that it ran when it did attests to the power and cunning behind the rigged game that is Wall Street. _______ UPDATE (June 24, 8:25 p.m.): Three weeks of sideways tedium could make one forget that there are still higher targets outstanding. That is indeed the case, however, and the 120.42 target given above should be kept in mind as a minimum bull-market objective. ______ UPDATE (July 3, 11:00 a.m. EDT): Yesterday's high at 121.89 fulfilled our target. Traders should position from the short side now. _______ UPDATE (July 8, 3:14 a.m. EDT): The pullback from our target amounted to a little more than $7, but traders would need to have been nimble to get shorts covered near the low, 114.27.
Tuesday, June 18, 2013
A Subtle Failure in a Bellwether Stock
– Posted in: Free Rick's PicksMy tout for Google today includes a chart that highlights a subtle but possibly significant failure by bulls to clear a key technical hurdle during the most recent stampede. I'm not betting against the stock at this point, mind you, but further developments bear watching.
GOOG – Google (Last:886.27)
– Posted in: Current Touts Free Rick's PicksMuch as we've come to view the stock market as a one-way bet these days, so have we come to accept that Google will eventually sell for $1000 a share. Or will it? I'd need odds to bet the "Don't Pass" line on this one, but it is at least curious that the stock's most recent rally failed by a hair to surpass a small but technically significant 'external' peak at 892.14 that I've labeled in the chart. As we know, rallies that are destined for bigger things don't usually hesitate at such trivial obstacles, but in this case Google did. If you look closely at similar rallies in the chart, you'll see that in each instance where there was a small peak that required just a smidgen more effort to exceed, the stock did not fail. GOOG could still surpass 892.14 on the next thrust, but as we know, it's the first attempt that defines whether buyers have the moxie to keep on going. I raise this point speculatively, of course, and Google will still be on a nice 'camo' buy signal if it gets past 892.14 and pulls back from just above it. But we should nonetheless note the small failure that has already occurred as a very subtle warning sign of possible trouble ahead.
ESU13 – September E-Mini S&P (Last:1634.25)
– Posted in: Current Touts Rick's PicksThere were some nasty cross currents at work on Monday -- tradable, as will nearly always be the case for camouflageurs, but not easily so. The pattern shown could prove useful to night owls, or perhaps to day traders if it has not panned out by the opening bell on Tuesday. The 1659.50 target is validated by price action Monday morning very near, if not precisely at, the p midpoint. Notice that there were two distinctive peaks created during the first half of the session. They lie, respectively, at 1641.00 and 150 minutes later, at 1639.50. Any b-c pullback that begins from somewhere in-between would be a bonanza for camouflageurs looking to get long. If it happens almost too quickly to catch that would be a plus, since there would be relatively few competitors aboard. You should plan accordingly by being on instant-alert.
