Join The Trading Room

Full Steam Ahead for Stocks

By Rick Ackerman Posted on March 27, 2013, 12:07 am EDT Last Updated March 27, 2013, 12:07 am EDT

As of yesterday, Cyprus was on its way to becoming a distant concern, pushed off the front page by news about New Jersey’s $338 million Powerball winner and the Supreme Court’s likely endorsement of same-sex marriages. And yet, with euroland’s latest banking crisis out of the way for now, investors acted surprisingly subdued yesterday, pushing the Dow to a modest gain of 113 points.  Our guess is that Wall Street is quietly gearing up for a rip-roaring short squeeze to finish out the week. The broad averages have been hovering near record highs to begin with, but by the time Friday rolls around, we’re betting that stocks will be trading well above these levels, demonstrating yet again that investors haven’t a care in the world. The flip side, unfortunately, is that gold prices are about to head lower, having failed to register much of a pulse even during the most worrisome phase of negotiations to “rescue” the Bank of Cyprus.

Not to rain on speculators’ parade, but here’s a number to watch if you’re crazy enough, after all these years, to still be looking for a top:  1617.48, basis the S&P 500 Index.  That’s a proprietary Hidden Pivot target of ours (see chart above), and although we must concede that no such target that we’ve proffered over the last four years has shown fatal stopping power, this one seems likely to produce at least a short-able high. The purpose of these Hidden Pivot numbers is not only to provide precise swing points to get short or long, but to gauge the strength of the underlying trend. In this case, and generally speaking, if a clear “hidden” resistance such as this one gives way easily, it is a sign that considerable buying power remains to be spent. Thus, we would regard an easy move through 1617.48 as strongly implying that no end is in sight for the bullish rampage.  One more thing:  the target is also our minimum upside projection for the near term. Under the circumstances, any trades we recommend to subscribers will be from the long side.  Click here to join the fun with a week’s free subscription to Rick’s Picks.

  • Marc Authier March 30, 2013, 8:11 pm

    Full steam ahead as Italy, Spain, Portugal and Ireland about to steal all bank accounts of 20% of their money ? Full BS ahead indeed.

  • Marc Authier March 30, 2013, 8:09 pm

    Total BS. Full steam ahead as Canada votes a law to allow our banksters to steal Canadian’s bank account if the s**t hits the fan. Voted this week in the federal budget. I will stick to bags of silver 10 cents that rather buying this manure.

  • Rich March 28, 2013, 12:04 am

    No new SPX high today, still 13.76 points below Oct 2007 all-time intraday high with three weeks of distribution top and media hype.

    Monetary velocity, lowest in 55 years, could flip up to superinflationary blowoff overnight:

    http://bit.ly/14vNBYE

    What could that do to equity markets pumped up by fed primary dealers, prop desks and algos?

    Hint: Unpopular UST targeting +14% and trade dollar targeting +24%. Gold miner percentage price oscillators crossing up with NEM up +8% so far…

    • gary leibowitz March 28, 2013, 12:18 am

      Low velocity does indicate deflation pressures. No doubt about it. The notion that we can have a super inflationary blow off at any moment is just not in the cards. It would only happen after the fact. We must first see an acceleration of the deflation forces in order for governments to trigger inflation. They will not do so unless it is absolutely necessary.

      As for the long drawn out correction of late, I view that as a sure sign we go higher. A 10 percent move is pretty darn big given the short time and size of this market. The only event I am counting on as a “sure thing” is the 40 year Fibonacci cycle lows which will hit near end of 2014. We still have around 16 months till we see the next bottom. When this rolls over is anyone’s guess.

  • Mike S. March 27, 2013, 10:27 pm

    Is this guy always so accurate?

  • BigTom March 27, 2013, 7:01 pm

    RWD – I read your self-delusion experiment above but sorry guy, what you are describing here is a major cult that has already been in existence for quit some time now. It’s leading faction stays well hidden in dimly lit caverns of inequity called by the masters ‘wall street’ for some reason, when it is really not a street at all but dark caves filled with snakes and vipers and monsters and stuff like that. These cultists usually only appear in the darkest of moonless nights well hidden for prowling amongst unsuspecting sheeple haplessly grazing on nearby hillsides. It does not matter where these sheeple exist for these ‘cult figgure priest of wall street’ can magically by the press of a keyboard button transpose themselves anywhere in the digital financial world they wish. In unseen forbidden darkness the cultist devour these unsuspecting sheeple often using the remains to feed to a faction of sub-priests that dwell in the depths of hades but referred to often as ‘congressional deceivers’, an archaic term once used by some long lost civilization years ago in honor of, most probably, high priests that once existed within their culture. ‘Wall Street cultist’ are cleverly devouring and decimating the sheeple population about them while few of those sheeple are even aware of their dire situation. The problem of sustainability of feeding this dark cult is reaching extremely dangerous levels and these magical ‘wall street cultist’ are eating themselves out of existance and now are in the process of transforming themselves world wide to satisfy their enormous appitites. This deviousness by the ‘wall street cult’ is being afforded by an auxillary element within that secret ‘cult’ called only by the mysterious letters MSM, a most mighty god to the sheeple to which they devote countless hours each day paying almost trans-like tribute by most. The enormous powers this sub-cult MSM holds over the sheeple directly feeds back to the ‘wall street super cult’ that really owes it sustainablility to the well hidden and seldom seen ‘congressional’ cult that swirles around gobbling up all morsels of food that fall into their pit of darkness called hades, thus betraying the sheeple they had once pledged to protect!

    • John Jay March 27, 2013, 7:51 pm

      Big Tom,
      Look on the bright side.
      If and when a Marius or Sulla finally surfaces here in the States, his asset seizing task will be quite simple.
      There are only about 403 billionaires in the USA.
      And about 1400 on the entire planet.
      That makes for a very short proscription list.
      The more the wealth becomes consolidated, the easier the task to take it away when “Rome” falls and the mob is screaming for retaliation.
      I doubt I will see it come to pass.
      But eventually, if a handful of families lay claim to the entire planet, someone will laugh out loud at them and redistribute the wealth.
      Just look at all the wealth the Czar and his cronies “owned”.
      Until someone called their bluff.

      Due to rigged elections and a Federal Government owned by the oligarchs, we will continue on the road to ruin.
      But it will take some time to play out.
      I think we have yet to see the final act of the destruction of Western Civilization that began in earnest in August of 1914.
      When asked by someone what he thought about the French Revolution, Mao is reported to have said:
      “Too soon to tell.”
      It’s a work in progress!

  • gary leibowitz March 27, 2013, 3:54 pm

    I find it pretty prophetic that Rick’s possible top coincided with my SPX of 1620 from well over a year ago. Hope we are both right.

    • Buster March 27, 2013, 4:07 pm

      I hope so too, for both your sakes, ‘cos if things head down from here I can just see tomorrows headlines:
      “Permabear Rick Ackerman finally succumbs to persistent mind control technique, otherwise known as ‘Garyism’, to become the ultimate contrarian indicator”
      …& your guts will be be for garters, Gary!

    • redwilldanaher March 27, 2013, 6:03 pm

      I hope you are both wrong. Recently I started an experiment in self delusion. It’s working pretty well so far. It’s kinda addicting once you embrace it. I don’t see why I couldn’t get more and more people to join me and we could engage in mass delusion.

      Wait, I have an eery sense that I’m late to something…

  • Buster March 27, 2013, 12:44 pm

    With the Euro breaking down, along with the metals, & high levels of bullishness expecting the markets to keep going ever higher, it could just as easily turn here & catch quite a few out, as in Rich’s interesting link & take on things from yesterday. But who are we, the unwashed masses to know? Like you both, I don’t feel that Cyprus is a non-event by a long shot. At least another nail in the coffin of support from the masses for Babylon the Great, by my estimations.
    On another note, it’s been just about the coldest winter in 100 years here in the UK, no doubt prompting some tax officials to hurriedly begin to draw up new propaganda material changing the word’s ‘global warming’ to ‘global cooling’, since people are beginning to ask some very searching questions like why the hell are we being taxed so much on the back of it & where’s all the money really going??!! One or two average village idiots have also questioned why not just stop this financial pressure on us all from taxes, interest, inflation, stealth taxes, fines, penalties, licenses, fees, more taxes, more inflation etc, etc, etc……& let us all just relax & sit around a bit more, thereby lowering our ‘carbon footprints’ quite considerably!! But then some, obviously much cleverer & intelligent, official laughed at such a stupid idea, & said we should all just get back to our treadmills pronto or else!
    So that clears that up then.

    • John Jay March 27, 2013, 2:31 pm

      Buster,
      I saw a news segment that showed some sheep ranchers somewhere in GB walking their land with long poles looking for their sheep buried under the snow.
      They were desperate because without their sheep they were bankrupt. They put one sheep they dug out on a sled and pulled him back to the barn.

      As far as the markets go Ben is not going to let the stock or bond markets crash unless the oligarchs are positioned to profit from it and tell him to pull the plug.
      He did not just think up all this insanity and implement it on his own.
      Easy Al got out of line just once with his “Irrational exuberance” crack and he got back in line real fast.
      If the Euro Zone implodes the Fed member banks can unload some of the bad paper on their balance sheet to fleeing foreigners.
      Bedlam!

    • Buster March 27, 2013, 2:49 pm

      Yes, it’s been an awful & bloomin’ cold winter here JJ. Brass monkeys have been advertising for welders.

      BTW, I’ve been receiving some very market bullish mail lately, with talk as if we’re back before the financial crisis. Buying property & shares is high on the shopping list of scrambling customers, & everything’s fine & dandy again, apparently.
      I disagree not in nominal terms, but in populous terms this is so far out of whack with reality it seems ridiculous to try to spin it. The peasants are revolting in spirit if not in actions, yet , -or appearances! A little more Cyprus action & they could actually do something positive about it, even.
      The rivers of waters she sits on are drying up like a puddle in the Sahara, from where I’m standing, & her beauty is fading in the eyes of the masses quicker than those of a cheating wife.

      ” For in her heart she keeps saying, ‘I sit a queen, and I am no widow, and I shall never see mourning.’ 8 That is why in one day her plagues will come…15 “The traveling merchants of these things, who became rich from her, will stand at a distance because of fear of her torment and will weep and mourn, saying, ‘Too bad, too bad—the great city, clothed with fine linen and purple and scarlet, and richly adorned……because in one hour such great riches have been devastated!’” Revelation 1:

      Empire of the City, whether by chance or the divine, your days are numbered!


Exit From This Page Back to Trades