August 2009

The Diamonds blew past a 91.96 Hidden Pivot target, stopping us out of some September 90 puts that we held very briefly for a small loss. The rally was just a run-of-the-mill short squeeze begun on garden-variety opening-bell gap, but notice in the accompanying chart how it managed to slightly exceed a very subtle look-to-the-left peak made back in January. This spells more trouble, as far as I'm concerned, for any bear who was counting on reality to reassert itself in the stock market.

Last week's innocuous-seeming rally could wind up turning the tide even more energetically against bears, so I'd suggest taking a look at the chart I've included with today's analysis of the Diamonds. It shows the subtle breach of a so-called "look-to-the-left" peak made last autumn that could have significant implications for a bear rally that many of us thought was nearing exhaustion months ago. If the E-Mini S&P gets in gear by thrusting above 1002, that would confirm a picture as bullish as it is inscrutable.

GOOG's last push fell $5 shy of a $457 Hidden Pivot target it should have reached. The target lies at exactly 457.92, and the failure would have more serious implications if the stock falls below 423.50 before it's hit.

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