Friday, December 6, 2013

ESZ13 – December E-Mini S&P (Last:1800.00)

– Posted in: Current Touts Rick's Picks

What a hot, nasty mess!  Even so, the futures have moved with precise predictability lately relative to our Hidden Pivot targets. That makes the one at 1775.00 enticing as a place to try tightly-stopped bottom-fishing. I won't stipulate that you use camouflage for this gambit, since price movement has been so obliging of our methods lately.  However, if you're inclined to work the order, use a 1775.25 bid for a single contract, stop 1774.50. _______ UPDATE (11:23 a.m.): DaBoyz caught a whiff of the latest, phony unemployment data an hour before the opening, sending this vehicle into a short-squeeze spasm that was over minutes after it began. This will leave regular-session traders with little to do but gaze at their navels all day long as the futures consolidate the move, presumably for another short-squeeze to kick off 'Santa week' on Monday.  We did nothing, since the overnight low got nowhere near the 1775 correction target.

What If the Fed Bought $85B of Bullion Each Month?

– Posted in: Free Rick's Picks

In a perfect world, the Fed would be buying $85 billion worth of gold bullion every month rather than blowing it on bogus paper intrinsically worth no more than a pile of Confederate $50s. Alas, the hoax continues, abetted by the full-throated complicity of such useful idiots as Paul Krugman, winner of the Nobel Prize in Economics.  For our part, we'd suggest using the stock market's recent bout of weakness to accumulate stocks ahead of a holiday rally that is due to kick off next week. If it does not, we could only infer that even Quantitative Easing will not suffice to offset the Obamacare tax dreadnought and the scary buildup of retail inventories reported earlier this week.

DJIA – Dow Industrial Average (Last:15821)

– Posted in: Current Touts Free Rick's Picks

Although I can think of a hundred good reasons why the broad averages should be falling apart, chief among them the catastrophic failure of Obamacare and the effects thereof on a huge swath of the U.S. economy, there is one factor that for the time being will continue to offset them all: promiscuously easy credit.  And that is why we should regard the weakness of the last few days as a sleazy shakedown attempt by DaBoyz. Their goal, of course, is to load up on stocks before goosing them into a parabolic Santa rally next week. (Applying such a cheery, chirpy metaphor to so corrupt, cynical and evil an enterprise as the stock market makes me want to barf.) Notice in the chart how the week's engineered sell-offs have grown more and more impacted with each new day. The scrunched up price bars suggest that DaBoyz are not having an easy time trying to frighten widows, pensioners and orphans out of their shares. If this is in fact the case, we should see a mad scramble for stocks in the final hour or two on Friday. If not, we might infer that perhaps the Obamacare dreadnought -- along with a reported huge inventory build-up by retailers -- is finally starting to weight on investors' tiny, terminally diseased brains.