Rick’s Picks

Although Silver got hit hard last week when an abortive Reddit squeeze ran out of steam, the plunge does not look particularly fearsome on the longer-term charts.  In fact, the April Comex contract would become an enticing if somewhat scary 'mechanical' buy if the pullback comes down to x= 23.11, the green line. I say scary because the implied entry risk, using a 21.92 stop-loss just beneath the pattern's point 'C' low, would be around $16,000 per contract.  This set-up rates a 7.7 in my book, meaning I believe it has a 77% percent chance of producing a profit. Regardless, if and when the opportunity to jump aboard should arise, tune to the chat room for guidance tied to a risk-averse 'camouflage' set-up.

I've quickened the drumbeat over the last few weeks to warn that a bear market that will have been nearly 12 years in coming may finally have arrived.  You should be holding put options, including some butterfly spreads, in any of numerous trading vehicles that recently topped very precisely at targets predicted here as long as two months ago. Two nearly perfect hits occurred, respectively, in IWM and the E-Mini Nasdaq.  Concurrently, the E-mini S&Ps, the Dow Industrials and bellwether AAPL, have turned down sharply from midway between p2 and D. I did not view this seeming anomaly as putting them out of sync with the lunatic-powered indexes favored by portfolio managers (aka "the chimps"), since it is not unusual for long-term trends, even bull markets, to fall shy of 'D' targets. The Hidden Pivot Method cannot tell us with certainty when a bear market has begun; however, it has been quite impressive at nailing tops of lesser degree and at producing robust profits trading occasionally against the granddaddy of all bull markets. And now? A key rule of Hidden Pivot analysis is that if the dominant trend has shifted from bullish to bearish, stocks, ETFs, indexes and futures should begin to exceed their 'D' targets to the downside. Correspondingly, and with equal consistency in charts of all time frames, corrective abcd-type rallies should start to sputter out shy of their 'd' targets -- typically at p, the midpoint Hidden Pivot support. What to Look For These factors should be foremost in our minds as the E-Mini S&Ps (see chart inset) approach their first D target on the hourly chart since the selloff began last Tuesday. My expectation is that D=3664.75 will give way easily, but that even if not, the futures will close beneath it. If a bear market

The Cubes have rolled down from within an inch of a 331.87 Hidden Pivot target that has been in play theoretically since early October. It kept us on the right side of what may prove to be the last gasp of the bull mania begun in March. It  also allowed us to acquire put options with great timing. Whichever puts you hold, including butterfly spreads that I'd suggested, you should cash out half your position if and when its value doubles. If the fledgling downtrend gets legs, we can roll positions as warranted. The multitude of possible point 'A' lows in the chart argues against certitude that the bull market top is in. However, the prospect in somewhat corroborated by the recent top in the E-Mini Nasdaq. I'd been drum-rolling a potential top at exactly 13,555 for quite a while, and this pivot came within 50 cents (three thousandths of one percent) of nailing the sharply etched top recorded last Monday. After diving hard for a day, the futures subsequently head-faked to 13,600 before taking an even bigger plunge. However, there can be little doubt that bulls were feeling the weight of the Hidden Pivot.  Here's the chart, and although the point 'A' low is not as distinctive as I'd prefer, it has the advantage of being the only visible choice. FYI, the lesser downtrend begun last  Wednesday projects, with so-so clarity, to 12712. No clear equivalent is evident for QQQ. _______ UPDATE (Feb 1, 9:08 p.m. EST):  Su-prize su-prize.  The futures have rallied sharply from a low at 12727 that missed my correction target by a tenth of one percent. Now, if it pushes above the record 13,599 achieved last week, that will be no reason to let down our guard. _______ UPDATE (Feb 2, 5:52 p.m.): Bears are

We hold put positions in several indexes that topped simultaneously at compelling Hidden Pivot targets. This one, however -- an ETF proxy for the Dow Industrials -- is  somewhat out of sync, having failed to reach a clear 'hidden' resistance at D=323.59. The actual high at 312.71 is a little more than midway between p2 and D, and, as I've mentioned elsewhere, it would not be unusual or illogical for a major trend to fail where this one did. However, the chart still provides the strongest technical evidence we have to reserve at least some small doubt that the bull market top is in. Specifically, the decisiveness of the move past p=252.85 on the way up has raised the odds of a completion to D to around 75%. We'll give the benefit of the slight doubt to indices that have already reversed and sold down hard, but we should keep a close eye on this potential troublemaker nonetheless. _______ UPDATE (Feb 1, 9:25 p.m. EST): Bulls have a tough climb, given that the most recent down-leg exceeded a key 'external' low on the daily chart. This generated a bearish impulse leg that implies any rally that falls shy of 309.43 is merely corrective. ______ UPDATE (Feb 4, 9:20 p.m.): A fist-pump on the open bar pushed DIA above an internal and external peak, generating an impulse leg that will shortly propel this vehicle to new record highs.  We shouldn't fight it, but neither should we trust it, especially with an unachieved target in the E-Mini S&Ps 67 points above, at 3938.25.

My outlook and trading advice for silver is more bullish than for gold at the moment due to the latter's punk performance on the hourly chart. I tend to treat each separately in such instances rather than have feelings about one vehicle corrupt the accuracy of my forecast for the other.  In this case, Silver looks primed to drag Gold higher. How's that, you ask??  Well, the Reddit brats reportedly are intent on short-squeezing silver because they don't like the way DaScumballs who rule precious-metals markets often manipulate bullion quotes lower to cover short positions at bargain prices. We sincerely wish the brats all possible success in this worthy venture, but they ought to read Bunky Hunt's epitaph before they get carried away with themselves. Concerning Feb Gold, there is mild evidence to support  the case for a fall to p=1811.60 of the pattern shown (using the circled peak as 'C'), or even to D=1745.80. The equivalent numbers for the April contract are p=1814.40, and D=1749.80.  Looking at the charts in toto, though, it's clear that bears are not having any more success than bulls at profiting from bullion's ups and downs. Under the circumstances, I am making no recommendation, nor even ballyhooing a target. It could go either way, and I'm having difficulty caring which right now. _______ UPDATE (Feb 4, 9:16 p.m. EST): Here's the April chart, with a secondary (p2) HP support at 1782.10 that I didn't mention earlier. I proffer it now to those clinging to the hope that this unwarranted and gratuitous shakeout won't be quite as bad as it could get. ______ UPDATE (Feb 4, 9:25 p.m.): The little weasel plunged to 1784.60, an inch shy of the 1782.10 target flagged above, before rebounding moderately into the close.  The rally will become more credible

Friday's psychotic leap stalled almost precisely at p=38,822 before reversing just as precipitously. This validates the pattern itself and its D=48,834 target, although we'll need to see a decisive push above p to make more upside to D an odds-on bet. Another useful inference is that if and when bulls hit 48,834, a pullback from it is likely to occur with similar precision. In any event, the reversal would be speculatively tradeable with either a tight stop-loss or an rABC set-up on a lesser chart. The relapse to the green line as the week ended just missed triggering a 'mechanical' buy because the rally that preceded it failed, if only by a hair, to touch p=38,822.  That said, my gut instinct is that any longs initiated at the green long will not be stopped out below 'C' before becoming at least moderately profitable. By 'moderately', I mean that I cannot guarantee it will return to p, where a partial profit could be taken. Here's a comparable although not identical view of GBTC. _______ UPDATE (Feb 1, 9:42 p.m.): Friday's crazed leap failed by a hair to hit the red line, a midpoint pivot at 38822. A trend failure in this vehicle is rare, and it has negated a 'mechanical' buy trigger that would otherwise have occurred on Sunday's pullback to the green line (x=33816).  The rally was impulsive nonetheless, having exceeded two external peaks on the daily chart. That's bullish, but if I am going to suggest any bottom-fishing it will be based on a legit 'mechanical' setup that is nowhere in sight at the moment. _______ UPDATE (Feb 4, 9:32 p.m.): This time buyers got even close to the 38,822 red line without touching it, peaking at 38,737. If BRTI falls again to the green line at 33816, treat

Silver continues to outperform gold in subtle technical ways that are encouraging. On Friday, for instance, the March contract blew past a midpoint Hidden Pivot associated with a D target at 30.10. This implies the target is probably no worse than a 60% shot to be achieved. It also makes a pullback to the green line (x=25.55) an enticing spot for a 'mechanical' bid with a stop-loss at 24.03. (It may be possible to pare the entry risk by as much 90% using an rABC set-up, so stay tuned.) We might not be gifted with a nasty correction to x; regardless, price action in the chart supports a more bullish bias than we've allowed since late December. ______ UPDATE (Feb 1, 11:45 a.m. EST): Wowee! The strongest leap in 11 years has pushed the futures past my target, somewhat exceeding a revised target at 30.18 that I posted in the chat room. The ferocity with which the rally has impaled p=28.30 of a larger pattern is quite bullish and has raised the odds of more upside to at least D=34.675 to around 75%. Here's the chart. _______ UPDATE (Feb 1, 9:31 p.m.): The pullback has further to go, presumably to at least 27.77, where it would fill a gap created by the powerful leap begun three days ago from 24.71. ____UPDATE (Feb 2, 6:08): The correction from the top of Monday's exuberant spike to 30.35 has been brutal, erasing nearly two thirds of the substantial gains achieved since last Wednesday.  Even so, because the spike impaled the 28.30 midpoint pivot, odds are still good that the 34.675 target will eventually be achieved with or without the support of the Reddit  crowd. _______ UPDATE (Feb 4, 9:46 p.m.):  The futures would  become a fetching 'mechanical' buy at x=25.11. I'd have to

Use the 331.87 target shown in the chart to warn of a potentially important top, since another at 382.75 that I'd identified here a week seems far too ambitious with Biden nominally in charge of America.  The point 'A' low is not as distinctive as we should prefer, but it's good enough to imply that bulls are unlikely to simply blow past 331.87, even with the help of nervous-Nellie shorts. Another reason I prefer this target is that it closely coincides with one at 13,555 in the E-Mini Nasdaq that has been on our radar since September. Here's a chart that shows it.  We already hold puts in QQQ, but I'll recommend buying a few more cheap ones when 13,555 is reached. Like the target in QQQ, it looks unlikely to be a pushover. _______ UPDATE (Jan 27, 8:24 p.m. EST): Now wasn't that refreshing! The Cubes shed nearly 3% of their value today after topping at 330.32 on Monday, a hair below my target. As for the E-Mini Nasdaq, it got sacked for a 4.4% loss after cresting a millimeter  (0.6%) above the 13,555 target first drum-rolled here months ago. Let's see if the selloff snowballs into something frightening enough to wipe the smile off the Reddit/Robinhood crowd's face. _______ UPDATE (Jan 28, 9:35 p.m.): The 331.87 target remains unsullied by all the nuttiness, but we'll give it up if the Cubes can close for two consecutive days above it..

We have rally targets in play in numerous vehicles, all of which are near potentially important tops.  The previously identified E-Mini target at 3938.25 (see inset) gives it a little more running room than comparable targets in QQQ, IWM and NQ (although not DIA, which is nicely synced), but the pattern itself looks quite reliable.  For  trading purposes, we can try getting short in each without considering what the others are doing. Realize that the S&Ps are not necessarily going to top simultaneously with the Nasdaq 100 and the Russell. ______ UPDATE (Jan 27, 8:34 p.m. EST): The futures turned sharply lower, although bears will need to string together a few selloff's like today's to earn bragging rights. It's a start, though.