Tuesday, June 24, 2014

GLL, an ultrashort ETF bet on gold, has broken down, implying that bullion prices are about to head higher.  The move could be quite significant, since the downside Hidden Pivot target for GLL is well below current levels. For further details, check out today's tout and the accompanying chart.

The recent breakdown below an 84.67 midpoint Hidden Pivot is bullish for gold, since GLL tracks the metal's price inversely.  We haven't used this logic before, but the conclusion seems logical and is somewhat corroborated by an apparent consolidation pattern in gold futures.  The further implication is that the next leg up in gold will be quite substantial.

Sunday night's head-fake brought the futures close to two shortable Hidden Pivots -- one major, the other minor -- but I resisted the temptation because of the old adage that one should never short quiet tape. That and the timidity of yesterday's selling argued for waiting for a better opportunity. For further details, including a recapitulation of the precise rally targets, check out my 13:14 post in the chat room.  More immediately, night owls can try getting long at the 1948.25 target shown.

Use these tips for day trading stocks with greater success [Day traders have been abandoning the game in droves because it supposedly has become too rigged to beat. In fact, the markets have always been rigged, and it’s never been an easy way to make a living. Yes, thinking machines programmed mostly by nerds who know little about the psychology of trading have added a new layer of complexity. But the nerds are hardly unbeatable. Below is the advice we gave traders in a column that originally appeared in the Sunday San Francisco Examiner.  It has been modified to suit the times, but the advice still applies. RA] The late John Scarne, legendary card manipulator and gaming wizard, used to tell a story about how he and his pal, heavyweight boxer Jim Braddock, walked into a crooked card game and won a pile of money. Knowing that they were being cheated put Scarne on his guard, and he lost no time taking countermeasures to ensure his and Braddock's great success that evening. Whenever it was Scarne's turn to deal he went to work, peeling useful cards from the bottom and even the middle of the deck.  At one point, in full view of all, he surreptitiously stacked the cards while shuffling them, allowing him to deal Braddock a hand that beat a tableful of exceptionally good hands. Scarne surely would have feasted if he'd lived long enough to day trade and play the stock market today, since the game has come to be increasingly dominated by thimble-riggers and keister bandits who would not think twice about bankrupting some widow or stealing from an orphan's college fund. With stocks pushed ever higher by a tide of virtual money from the central bank, Wall Street's wolves have set upon an unwary flock