We should be able to get a good read on the rampaging bull by watching the E-mini S&Ps. Last week's high at 1978.25 was just two ticks from a Hidden Pivot rally target that had taken three weeks to reach. Under the circumstances, an upward reversal through it within 2-3 days would suggest there is still plenty of buying power percolating beneath the surface. The first sign of such a reversal would come with a 1972.25 print -- just three points above where the futures are currently trading, late Monday night. Night owls should look for an entry signal, camouflage-style, via a bullish impulse leg that takes out two prior peaks on the 15-minute chart without correcting. My hunch -- this is not rocket science -- is that stocks are about to head higher.
Tuesday, July 8, 2014
CLQ14 – August Crude (Last:103.42)
– Posted in: Current Touts Free Rick's PicksCrude oil appears to be showing the same devil-may-care obliviousness to events in the real world as the U.S. stock market. Yesterday, crude futures actually fell even though all hell was threatening to break loose in the Middle East. Hamas has stepped up its rocket attacks on Israel, launching 80 missiles from Gaza and warning that far worse was coming in retaliation for Israeli air strikes that killed seven terrorists. Those air strikes themselves were in retaliation for the murder of three Israeli teenagers by Hamas. The conflict could easily escalate to all-out war in the blink of an eye, and it's not inconceivable that Hezbollah might get involved by shelling Israel from Lebanon. Under the circumstances, crude prices could spike at any moment. Traders should look for an entry opportunity on the hourly chart, triggered by any rally that surpasses two prior peaks without correcting. System-trading aside, you may be able to jump aboard at the right moment simply by watching the tape for still-more-threatening news from the Middle East.
ESU14 – Sep E-Mini S&P (Last:1970.50)
– Posted in: Current Touts Rick's PicksLast week's high fell two ticks shy of the 1978.75 target shown, suggesting that could be it for a while for bulls. We've been looking to short a somewhat higher, more important target at 2007.25, but traders should remain open to any immediate shorting opportunities that develop from near current levels today or tomorrow. As enticing as the short at 1978.75 seemed at the time, it was not a percentage play, since it would have entailed holding the short position over a three-day holiday weekend after the futures had shown nothing but strength since mid-June. If you'd like further, real-time guidance, nudge me when I'm in the chat room intraday.
