It's always fun when important rally targets for two key vehicles synch up. This is currently the case for the Dow Industrials and the E-Mini S&Ps. For detailed information on what to shoot for --- both from the long and the short side -- check out my touts for these two vehicles and the accompanying charts. To facilitate the use of equity options, I've also furnished a target in DIA that is equivalent to the one provided for the cash DJIA.
Friday, January 9, 2015
ESH15 – March E-Mini S&P (Last:2052.00)
– Posted in: Current Touts Free Rick's PicksI'm not even slightly impressed by the so-far 75-point short-squeeze off the recent low, and neither should you be. In fact, were the rally to run for another 50 points, it would still fall shy of the 2105.00 bull-market target we've been using for months. (The equivalent target we'd used for the December contract was 2115.00.) This Hidden Pivot resistance still looks both compelling and daunting, and I would therefore be surprised if: 1) it were not achieved; or, 2) it were to be exceeded by more than a point or two the first time it is touched. That doesn't necessarily mean the pivot resistance is impervious to destruction -- only that the rally that has unfolded so far this year has faced no impediments of any significance. The bull market's levitators are not omnipotent, and so we should save the oohs and ahhs until such time as they blow past 2105.00 Whatever happens, we'll be looking to get short at or near the target and -- as always -- to make money on the trade even if we are wrong. If you'd like to see how this is done, join us in the Rick's Picks chat room, where trades are called in real time.
CLG15 – February Crude (Last:47.98)
– Posted in: Current Touts Rick's PicksThe chart shows the 43.58 Hidden Pivot support we've been using as a minimum downside target for the near term. Two further implications should be noted: 1) a rally to p=51.43 can be shorted, although I would encourage you to do so using the camouflage technique if you plan on shorting more than a single contract. Otherwise, a mechanical short from 51.43 would dictate a stop-loss at 54.04; and 2) an overshoot of 43.58 would shift point A up to a peak at 77.81 recorded on November 21. The implied bear-market target thereof would be 35.40. _______ UPDATE (January 14, 11:53 p.m. EST): Tuesday's low at missed my target by 62 cents. That's a wider margin than I'd have expected, but given the impulsiveness of the rally since, we should assume that a bottom of at least intermediate-term importance is in. That said, it's suspicious that Wednesday night's spike has failed thus far to exceed last week's high by a measly 6 cents.
