-- Posted Wednesday, 15 February 2006 | Digg This Article | Source: GoldSeek.com

Rick’s Picks

Wednesday, February 15, 2006

For investors who’d rather be smart than lucky 

Yesterday’s forecast for Comex Gold caught the low of a $13 rally to the exact tick, 537.80. Because this occurred after midnight in New York, I was somewhat surprised to hear from a couple of subscribers who nailed the trade, using a suggested 0.90-cent stop-loss that proved more than adequate. Both bought the bottom and then proceeded to turn a routine bottom-fishing gambit into an act of cool daring:  “I went long at 438.10 in overnight session and placed a stop loss to risk only about $120,”wrote Lawrence Towner. “Got home from work and exited at 550.30 for a cool $1,220.  Since I can't fish, I'm very glad for the advice.” Substituting a couple of mini-contracts for the full-sized, the other subscriber, David Fourie “had two fills when I awoke! Got out at 544.0 on both after sleeping through the 548.0 high. An easy $438 , having risked $54 plus commissions.”

Cupla nice notes, really, especially since my mailbox was not exactly inundated with Valentines. Now the question is how long the low will survive. Any bounce in gold that achieves $13 of gains in less than 24 hours is certainly a good start on a direction change. That recouped almost 40% of the steep drop begun a week ago from 572.30. But I’d feel more confident about it if the recovery were to close above 559.12, the 0.618 Fibonacci, or better yet, above the peaklet at 563.80 made last Friday. That would create the kind of robust impulse leg that could power the futures to new highs. Regardless, we’ve banked a nice piece of the move and can relax a bit while uncertainties play out in metals bourses around the world. If the pullback has further to go, the most logical targets I can come up with are 559.10 or, worst case, 528.20. They represent, respectively, a 50% retracement of the rally leg begun from 496.50 just before Christmas; and a 0.618 correction of same.

***

Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2006, Rick Ackerman. All Rights Reserved. www.rickackerman.com

-- Posted Wednesday, 15 February 2006 | Digg This Article | Source: GoldSeek.com

Previous Articles by Rick Ackerman

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer