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Rick Ackerman
Crude oil prices are at an extremely crucial threshold, since a move touching 107, basis the NYMEX April futures, would imply a very powerful breakout is at hand. Since this could signal a heightened threat of war in the Middle East, we’ll be keeping a very close watch in the days ahead.
It’s been a long while since we looked in on this stock, but its ballistic rally of late warrants a timely update. While Cameco’s long dirge appears, finally, to have ended, the stock’s ability to hurdle a series of ‘external’ peaks tracing back nearly a year can tell us how far it might travel relative to the bull market peak near 45 from last February. For now, we’ll judge buyers’ mettle according to how well they handle the 27.56 Hidden Pivot target of the pattern shown. The stock is a cinch to get there, but it will need to get past the resistance within no more than a day or two of first touching it before we infer that there is power enough to drive the rally significantly higher in the months ahead. Would you like to learn how we use the ‘camouflage’ trading technique to significantly reduce entry risk? Click here for details.
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The Gold Bugs Index has rallied 33 points after bottoming within less than a point of a 504.27 correction target flagged here earlier. Short-term, there is about 5% of additional upside based on a Hidden Pivot target at 566.77 that is shown in the chart. Although yesterday’s sharp rally was not impulsive on the hourly chart, bulls should take encouragement from the fact that HUI appears to be consolidating above the 535.92 midpoint pivot associated with the target. Although we don’t ordinarily trade this vehicle, I’ll note nonetheless that the series of four ‘external’ peaks that I’ve labeled looks promising for traders who want to leverage a bullish bet on a B-C pullback from anywhere in their midst. You can learn to do this stuff yourself. Click here for details concerning the upcoming Hidden Pivot Webinar, where you’ll learn enough in just six weeks to kiss your guru goodbye.
T-Bills May Offer Boomers a ‘Safe’ Way to Lose
by Rick Ackerman on February 23, 2012 2:33 am GMT · 11 comments
[Blogger Robert Moore is a frequent contributor to the Rick’s Picks forum and the author of some of the more provocative guest commentaries we’ve published. In the essay below, he deconstructs talk by high-level bankers about offering savers a negative rate of return on Treasury Bills. Robert also explains why, for Baby Boomers in particular, this could have dire consequences. RA]
Well, it’s official: The U.S. government is thinking about becoming a predatory lender. On February 1, the Treasury Borrowing Advisory Committee — a symposium composed mainly of representatives of the cabal of large U.S. banks that are referred to as “Primary Dealers” in Treasury auction-speak — tabled the following, seemingly innocuous, little tidbit: “The question was asked if it made sense for Treasury to permit bids and awards at negative interest rates in marketable Treasury bill auctions. [A Treasury employee] noted that there were operational issues associated with such a rule change, but that the hurdles were not insurmountable.” The Primary Dealers are asking the Treasury if there is a way to allow people to bid more for a Treasury Security than the cash value of the security at maturity. For example, bidding $105 for a Treasury Bill that you know will be redeemable for only $100 from the Treasury at maturity.
Many financial newsletter writers and mainstream media analysts will probably infer from this development that the market expectation is for more future deflation (declining money supplies and therefore decreasing general price levels), while traders will salivate at the prospect of higher speculative gains to be made on T-Bills that can be unloaded later at higher prices when the “greater fool” comes along. But what would this development mean for the individual long-term investor (aka “the greater fool”)? It would mean, very simply, that they would be agreeing to pay the United States Government a fee to store their cash savings. » Read the full article