Big picture targets noted here earlier lie respectively at 1150.80 and 1028.50. Bulls will still have a chance to dig in their heels at the 1186.50 midpoint pivot (red line) of the pattern shown. (Note: It can be bottom-fished with a tight stop-loss.) If they fail to turn things around there, however, you could expect the slide to continue to at least 1153.20, the 'D' target of the pattern shown. That is close enough to the major midpoint pivot at 1550.80 to suggest the two together will exert a magnetic pull once 1170 (or so) is breached. Because they are separated by a few points, you'll need to use the camouflage technique if you attempt to bottom-fish.
Tuesday, December 31, 2013
Happy New Year!
– Posted in: Free Rick's PicksAs 2013 draws to a close, I want to offer subscribers and readers my best wishes for the New Year. As the year unfolds, may you be blessed with good health, prosperity, pleasant tidings and serene contentment. See you in 2014!
ESH14 – March E-Mini S&P (Last:1834.75)
– Posted in: Current Touts Free Rick's PicksPermabears hoping that the opening days of 2014 will deliver a long overdue reality check to the markets had better study the chart accompanying this tout. If anything, the year appears likely to begin with a bang rather than a bust. Notice how all of the price action during the last several days has occurred above a Hidden Pivot resistance at 1830.00. The rally target was so clear and compelling that we might have expected a pause of at least 3-5 days before stocks went any higher. Instead, the futures pushed through the resistance effortlessly, suggesting that bulls are consolidating for yet another leg up. One caveat applies, however: The daily chart shows Hidden Pivot rally targets at 1856.75 and 1893.75 that have been more than a year in coming (for those interested, A=1382.25 on 12/28/12; or alternatively, A=1340.25 on 11/26/12; and B=1685.75 on 5/22/13). Either number should be expected to show enough stopping power to be shortable (with a very tight stop-loss), and that's what I am going to suggest. However, if the lower number gives way easily, bet on more upside to the higher, at least. If it too proves to be a pushover, bears had better run for cover. _______ UPDATE (11:09 p.m. EST): In the chat-room just now, an alert Pivoteer identified a very compelling target on the weekly chart at 1846.75. The futures are not likely to exceed it, at least not today, since the target is clear, clean and unmistakable. But it will not necessarily make for an ideal short, since, Mr. Market being his diabolical, sonofabitch self, the futures are liable to be hovering within a point of it when 2013's final bell rings. _______ UPDATE (After the bell): Actually, the futures were hovering just a half-point from our target when the bell
