The leadership of lunatic stocks such as Google, Netflix and Priceline is needed to power the broad averages higher, and that's why a key support in the latter must hold. If not, PCLN is likely to fall a further $35, presumably delaying the stock market's ascent to fabulous new highs. Check out today's tout for Priceline for precise benchmarks, the most immediate of which will be in play -- and potentially short-able -- Wednesday night and Thursday morning.
Thursday, August 28, 2014
CLV14 – October Crude (Last:95.25)
– Posted in: Current Touts Rick's PicksOctober Crude's breach of the midpoint support two weeks ago was predictive of the weakness that followed, as well as of the success of shorts initiated belatedly on rallies to the red line. The 91.43 target has been in play all along, although the squiggly C-D leg of this pattern suggests it has been a struggle for bears to get there. Even so, your trading bias should remain bearish until D is reached, at which point you should consider reversing short positions and go long. Crude continues to deliver precise hits relative to our old target benchmark of 21 cents, but I would still advise using a 'camouflage' strategy to initiate trades at implied swing points, rather than trading against the trend with a very tight stop of perhaps 6-8 cents. ______ UPDATE (Sep 3, 9:20 p.m. EDT): Let's see if yesterday's wilding spree can get legs. From a Hidden Pivot standpoint, the move would start to look interesting on a print just above the 96.88 peak shown. Please note that a pullback from just above that peak could set up a 'camouflage' buying opportunity on the lesser charts.
PCLN – Priceline (Last:1234.50)
– Posted in: Current Touts Free Rick's PicksIf the lunatic stocks are about to lead the broad averages higher, we should see Priceline bounce sharply from the 1259.21 midpoint support shown. Yesterday's low came within 38 cents of this Hidden Pivot -- close enough for the target to be considered fulfilled. Any further slippage, however, and its 'D' sibling at 1224.45 will be in play. This would imply that the stock market itself is likely to go nowhere, or possibly down, in the days ahead. The stock would become shortable on a decisive breach of the red line (i.e., a breach of perhaps 0.30-0.60 cents), but if you plan on getting short for the potential $35 ride south, you should initiate the trade on the 5-minute chart or less, using a corrective pattern that would subject you to no more risk theoretically than perhaps 0.15 per share. If the trade works and you are still short when 1224.45 is reached or closely approached, reverse the position and buy at the target aggressively using a tight stop.
