Silver Wheaton may yield an opportune buy this morning, according to an analysis of the stock done in conjunction with last night’s concluding session of the Hidden Pivot Seminar. Accordingly, I’ll recommend bidding 29.33 for 400 shares, stop 29.18. Our bid lies two cents above the midpoint Hidden Pivot of the pattern shown. This play is obviously highly speculative, since it is usually wise, when trying to catch a falling piano, to let it first bounce three times. If the stop fails, try again at the ‘D’ target, 27.97, using a 27.99 bid, stop 27.89. My hunch is that there are more than a few Rick’s Picks subscribers who have been itching to try again. We already hold a bull spread (two June 40-42 verticals) whose cost basis has effectively been reduced to zero by partial profit taking during a fleeting rally a while back. Note: There is one more target at 28.15 where you could try buying, but this should be done only by those who understand why. Hint: Start with A=34.20 on 4/2, hourly chart. _______ UPDATE: The target at 29.33 caught Silver Wheaton’s intraday low to the penny, although so far the stock has gotten no bounce from it whatsoever. Maintain stops on our newly acquired position at 29.18, but make it one-cancels-the-other with a closing offer of 200 shares @ 29.97, day order. The wind in precious metals will need to change direction Sunday evening to lift this stock out of trouble. If it falls anew, 27.97 would be the next spot where we can try to get long. _______ UPDATE (11:54 a.m. EDT): Silver Wheaton has gotten pulverized this morning. The good news is that the low of the $1.38 plunge was 27.96, a single penny beneath where I’d suggested buying. For your further guidance, I’ll track 400 shares from 28.11. This imputes to our position the 15-cent loss sustained on the stop-loss at 29.18. Sell 200 shares now, at around 28.61, and sit tight. _______ FURTHER UPDATE (1:21 p.m. EDT): After taking a partial profit on 200 shares, we continue to hold 200 shares with an effective cost basis of 27.47. We also hold two June 40-42 call spreads whose cost basis after profit taking is…zero (!)
