Tuesday, October 28, 2014

Defensive Advice for Bears

– Posted in: Rick's Picks

Feeling the pain of shorts from day to day by putting yourself in their shoes remains the key to reading stocks accurately. Short-covering bears took the day off yesterday -- but it was, after all, a Monday, and the buying hysteria was going to cool anyway, given that it has been raging since October 17. For trading purposes, I've proffered a rally target in the E-Mini S&Ps that could be helpful to night owls. If stocks get second wind today, though, it's likely to be another tough week for bears.

SNIPF – Snipp Interactive (Last:0.4000)

– Posted in: Current Touts Free Rick's Picks

I first recommended this stock in early September after being very impressed with a presentation by its CEO, Atul Sabharwal. The company provides mobile marketing solutions to a growing list of clients that includes Walmart, ESPN, Lexus, Taco Bell, Target, Johnson & Johnson and Minute Maid.  Snipp's shares are listed on the Toronto Venture Exchange (TSX: SPN) and on the OTC in the U.S. (symbol: SNIPF), but yesterday it filed with the SEC for an exchange listing in the U.S.  From a technical standpoint, SNIPF looks to be basing for a move to as high as 0.4385. First, though, it would need to trip a buy signal at 0.2878, then to clear the 0.3380 midpoint pivot (see inset).  The company continues to win new business at a rapid clip, and that's why I expect the earnings report due out November 15 to be strong. Full disclosure: I hold shares and warrants in this company. _______ UPDATE (November 13, 10:49 a.m. EST): Two days ahead of the earnings report, the stock has taken quite a leap, with an opening bar high today at 0.38 that was 36% above yesterday's close. This means the 0.4385 target flagged above is well in play.  _______ UPDATE (6:49 p.m.): The stock took a leap Thursday back up to the midpoint pivot at 0.3380 associated with the 0.4385 target. Regarding earnings, they will be out later than expected, in line with the Canadian deadline for filing. Stay tuned.  _______ UPDATE (November 17):  Snipp has reported 252% earnings growth for Q3. Click here for the company's latest filing. _______ UPDATE (December 5, 10:13 a.m.): Zounds!  The stock has popped to 0.40, quadrupling in the eight months since I first recommended it. My immediate target is 0.4356, but SNIPF will need some rest if and when it gets

ESZ14 – Dec E-Mini S&P (Last:1966.00)

– Posted in: Current Touts Rick's Picks

Yesterday's tout nailed the 1966.00 high of a 21-point plunge within a single tick.  Bears shouldn't allow themselves to grow complacent because of yesterday's dearth of short-covering, however, since the broad averages were due for a breather after a five-day wilding spree -- one that could ultimately clear the path for a run-up to new record highs. Index futures seemed to be rolling over yesterday afternoon, presumably preparing to grope their way to a level at which sellers have exhausted themselves. A slightly bullish bias is indicated nonetheless, since a 1963.50 rally target (see inset) remains outstanding. Because of this, a pullback to the midpoint pivot at 1956.25 should be used by night owls as a speculative buying opportunity. _______ UPDATE (1:08 p.m.):  The futures pulled back to an overnight low of 1956.25 before embarking on a 12-point rally.  If you caught the move, please let me know in the chat room so that I can establish tracking guidance.