Webinar

The stock demolished the Hidden Pivot support I'd flagged at 0.4062 (USD), implying the decline begun in February is likely to continue to at least 0.3586, or perhaps even to 0.3248 in the weeks ahead. I spoke yesterday with the company's CEO, Atul Sabharwal, and he remains confident about Snipp's prospects, even if the stock has come down hard after topping at 0.7780 earlier this year.  SNIPF (the company's U.S. symbol; it trades as SPN in Canada) has lost slightly more than half of its value since then, a pretty stiff correction. Sabharwal points out that many stocks listed on the Canadian Venture Exchange, which is heavily weighted with energy and natural resource companies, have gotten pummeled this year, weighing down the shares of even strong performers like Snipp.  He notes that Snipp's balance sheet is in "great shape," with a $10 million cash reserve, and that "business is as good as ever." That said, 22 million Snipp shares issued at 0.55 (CDN) became tradable in June, glutting the market at a time when Canadian Venture Exchange stocks were getting trounced. This created a "perfect storm" to rock SNIPF's boat, Sabharwal said.  "I don't know what's ailing the exchange. Maybe there's fear of a tech-bubble blow-up. But it's put a lot of pressure on us."  Click here for an upbeat assessment of Snipp prepared by analysts at EuroPacific Canada and published a month ago.  (Note: Your editor still holds a position in the stock.) _______ UPDATE (July 8, 2:18 p.m. EDT): The ultimate bottom may lie still lower, since the stock failed today to hold above the absolutely clear and authoritative Hidden Pivot support at 0.3248 (USD) noted above. What this implies is that SNIPF could now fall to 0.2701 before finding a bottom, or perhaps even to 0.2068, my

We went back to the basics during this session, focusing on the rules that govern impulse legs in order to clarify our outlook for the stock market. The broad averages appear to be building a broad top with a series of marginal new highs that stretch back to December. More recently, however, a downdraft in the Dow breached two prior lows on the weekly chart. How significant is this? For a precise answer, check out this one-hour recording, which also includes material on ‘mechanical’ trades and the camouflage technique.

This lesson contains some of the most explicitly detailed information I’ve offered to date on the ‘mechanical’ trade. It’s all here: minimum bar-counts, breakout levels and the rules that govern countertrend entries from points p, p2 and even x. The material takes up about a third of the recording and begins around the halfway point. In addition, we also looked at some camouflage opportunities and found a trade to like in BIDU during one of the most tedious sessions we’ve encountered during a string of boring weeks

This lesson contains a smorgasbord of trading ideas, although the main focus is on ‘mechanical’ trades that have been my point of emphasis these last few months. I’ve also borrowed a slide from the upcoming Hidden Pivot Webinar in July to illustrate a new concept – “white space” -- that further simplifies the rules of the mechanical trade.

We played cat-and-mouse with the E-Minis and some other joy-riding favorite during this session, but you might want to just skip to the last five minutes for the payoff – a ‘camouflage’ trade in August Gold that shows in detail how one could have made hay using the three-second bar chart to buy ahead of a target culled from a chart of much larger degree.

I tell students to come to these session ready to pull the trigger, since it is only by walking the walk that we truly learn. During this class we went two-for-two, with a short in GDX and a long in the E-Mini S&Ps. Both used ‘mechanical’ entries that were signaled in real time. The latter trade could have been worth as much $300 per contract when the 2120.50 rally target was hit exactly later that morning. It’s all here in this video, down to a bar-by-bar rationalization of the trade. The recording is a must-view for webinar grads, since it contains the most finely nuanced discussion to date of the mechanical trade.

We went into this exercise knowing we’d have to force a trade if we were going to trade at all. That’s because the market was deader than a fly in amber ahead of whatever drivel was coming from the Fed at 2:00. Against the odds, we found something to almost like in June Gold’s sub-minute charts. Did we come up with a winner? Check out the last half of this recording to find out.

Once again, our focus was on the finer points of the ‘mechanical’ trade. In this case, we considered a trade in Comex Gold futures that had been recommended the night before. The entry could hardly have been smoother or simpler, with a set-it-and-forget-it bid at 1195.60 and a stop-loss at 1192.80. The futures went no lower than 1194.20 before embarking on a powerful rally that hit 1218.50. The trade could have been worth as much as $2,290 per contract -- not bad for a day’s work. At the end of this recording, there is also a detailed game plan for legging into a bullish call spread in TLT if it falls to a Hidden Pivot target at 117.75. Check it out!

How do you get short when the Dow is already down 150 points? With a bearish target that implied 100 more points of additional downside potential, that was the problem we faced at the outset of this tutorial session. A risk-averse solution came in the form of a mechanical trade, the logic of which is explored in great detail. Also covered exhaustively is the use of put options to facilitate our strategy, taking into account option “delta” values and implied volatilities. For webinar grads still unclear on how to execute a mechanical trade, this is the most intensive lesson I have recorded to date on the topic.