May 2009

We are attempting to short four ____ calls for 0.60 against four ____ calls we already hold with a cost basis of 0.69. Leave the order in for today, but check back during the day, since we may need to adjust on-the-fly. DaBoyz got a little piggish yesterday with the brutal head-fake opening, but

The Dollar Index continues to flirt with catastrophe, having exceeded a crucial midpoint support at 83.45 yesterday by 0.03 points. I''ve already predicted that DXY will fall to at least _____ if the support is breached

A Hidden Pivot support at _____is the best of an unappetizing lot, but it would become a realistic downside target for the near term if the futures bludgeon its sibling midpoint at 910.30 into submission. The support has already been exceeded by three ticks -- not quite enough for us to infer

The futures have gotten squeezed for 17 points since bottoming late Thursday afternoon, so there are obviously a few short-sellers left with more guts than brains. Night owls could take advantage by bottom-fishing at ____ , stop ____.

Are bears about to get a breather? It certainly looks that way, since two trading vehicles that we track and trade daily reversed sharply yesterday without reaching their respective Hidden Pivot rally targets. We were looking for Goldman Sachs to hit a minimum $144.19 to signal the end of the massive short-squeeze begun in November; the stock only reached $141.56 in the opening minutes of the session, however, and then it was downhill for the rest of the day. When the dust settled, the stock had fallen nearly $10, recouping some of those losses late in the day to finish at 136.50, down nearly $3. Meanwhile, another issue that we keep on top of, the E-Mini S&P, similarly climaxed minutes after the opening, hitting a high at 929.50 that fell four points shy of a rally target at 933.50 that we'd told subscribers about earlier in the week.   Ordinarily, we would regard such price action as disappointing but not necessarily fatal. In this case, however, there are aggravating factors that suggest the reversal from early-morning highs could be signaling serious trouble ahead.  For one, it was the second day in a row that buyers got sucker-punched on the opening bell. Stocks had opened on a gap on Wednesday as well, and most issues never traded above those highs for the rest of the day. Yesterday's short-squeeze opening was even nastier, since stocks fell steadily for the next six hours after gapping sharply above the previous day's highs on the opening bell. Short-sellers are unlikely to be fooled a third time, and that's why we'll be looking for a soft opening Friday morning. But don't expect much of a rally thereafter, since short-covering has been the only buying we've seen since early March with the power to lift the broad

Gold looks well fortified to buck the insanity on Wall Street, so expect it to hang out at worst if the broad averages get goosed higher again today. However, if the June futures break higher, we should expect the rally to hit a minimum _____ before week's end. As the accompanying chat shows, the rally

Although we remain as bearish on the U.S. economy as anyone we know, our obsessive focus on the shares of Goldman Sachs has kept us unwaveringly bullish throughout the stock market's spectacular bear rally. Most recently, ever since Goldman hit a bullish tripwire at $121 a couple of weeks ago, we've been looking for the stock to continue up to at least $144.19.  That's a key resistance that we refer to as a Hidden Pivot, and it has the potential to stop the rally cold.   For a while yesterday it looked like the pivot might be tested: The stock shot up to $140.36 late in the session, but a swoon in the final hour postponed a rendezvous with the target that seems all but unavoidable by week's end.  The apex of yesterday's move marked a $14 gain since Monday, a powerful surge that places Goldman among the high-beta leaders of the Big Board. But the Dow was up a hundred points as well, settling near the intraday high and leaving shorts on the ropes at the final bell.  Apple and Google Targets We have rally targets outstanding in a few other trading vehicles, making it even more likely that we'll be hearing from the Fat Lady sometime soon. Apple shares, for one, have room to move before they hit an important Hidden Pivot resistance, and so do the shares of Google. Coming in yesterday morning, we had recommended buying Google put options if the stock hit 407.78, which it did. However, the actual high at 408.28 occurred on a $6 short-squeeze in the opening seconds of the day, before trading in puts and calls had begun in earnest. The stock subsequently fell back $7, and it's still unclear whether we should be disappointed about being shut out of the

Early Wednesday evening, the futures were playing toe-sies with the 917.75 Hidden Pivot target identified in yesterday early-morning update. They have been no higher than that today, but we shouldn't rely too heavily on the pivot's stopping power. If and when it gets smashed, look for the futures to continue higher, to at least

We are trying to short four ____ calls against the September 10 calls we already hold for an average 0.69. Since we were unable to short the calls yesterday for 0.50, let's