I'd sketched out crude's next tumble hypothetically yesterday, but I'd imagined that it would require one more rally to pretty up the head-and-shoulders pattern that his dominated this vehicle since it crested in late June. Instead, the futures collapsed in mere hours to the anticipated support level. From a Hidden Pivot perspective, the bounce from the 95.28 target shown was so precise that we should expect more downside exactly to the next, 93.46, if it is breached. Traders should use this forecast, which I would rate as high-odds, to suit their needs and styles.
Friday, August 15, 2014
A Rally Filled with Carbs, Gluten and Transfats
– Posted in: Free Rick's PicksYesterday's feeble rally may have been loaded with gluten, carbs and transfats, but it achieved its goal of keeping shorts on the ropes. It also brought the E-Mini S&Ps inches closer to a rally target that has obtained all week -- a target you shouldn't hesitate to short, provided certain conditions that I have spelled out in the touts section are met.
ESU14 – Sep E-Mini S&P (Last:1946.75)
– Posted in: Current Touts Free Rick's PicksYesterday's feeble, ratcheting short-squeeze changed nothing in my outlook, although what progress the futures made has given me a queasy feeling that the 1960.75 target will be achieved on Friday's closing bell. Of course, it would take more daring to open a short position at that point. But even if the target is hit earlier in the session, a shallow pullback would have the same effect. My advice is to short the little sonofabitch anyway, provided you are able to monitor and cover the position if necessary when index futures begin to trade Sunday evening. To bolster your confidence, let me say this: I cannot imagine this vehicle not reaching the target, nor failing to produce a tradable pullback from within an inch of it. _______ UPDATE (11:44 a.m. EDT): The futures head-faked on the opening to exactly 1961.00 (!) then tanked 20 points. The short recommended above could have been worth as much as $1000 per contract. Click here to get free access for two weeks to the good stuff that only paying subscribers see.
