Bulls can take mild encouragement from Silver's price action of late, although it would be premature to exhale a big sigh of relief. The rally off Monday's low is bullishly impulsive on the hourly chart and has already surpassed the midpoint resistance at 17.478. This implies more upside to at least 17.695, the midpoint's 'D' sibling, over the near term. However, Hidden Pivots are less important here than the heap of supply that is layered all the way up to 18.00. Let's see how buyers do eating through it lest we wax overly bullish prematurely.
Tuesday, October 7, 2014
Shorts Getting Harder to Spook
– Posted in: Free Rick's PicksThink of the stock market's ups and downs as driven almost entirely by short covering and carnival-midway manipulation, and it begins to make sense. A couple of Sundays ago, when DaBoyz had to take index futures down 25 points to dry up selling ahead of the obligatory short squeeze, the strain was obvious. Now, it's equally obvious that shorts are getting harder to spook. Monday ended with the Dow up a nutty 208 points. One might have thought this would have left shorts badly on the run. Instead, the broad averages got only moderate lift on yesterday's opening bar before they detumesced into a state of tedium. Under the circumstances, we still view any rally as an opportunity to get short. That's the easy part; it's staying short that's a challenge.
ESZ14 – Dec E-Mini S&P (Last:1954.75)
– Posted in: Current Touts Rick's PicksYesterday's mild reversal gave bears a running start in after-hours trading, but they were struggling hard to make good use of this gift as the night wore on. Indeed, merely breaching the 1951.75 midpoint support of the pattern shown seemed more than sellers could handle. I expect them to overcome their fear and timidity by Tuesday's opening, however, and night owls should therefore position from the short side, with the further goal of reversing the trade at 1941.50, tightly stopped
