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

Rick’s Picks

Wednesday, March 15, 2005

For investors who’d rather be smart than lucky 

It took the S&Ps all of two days to chew through a thick wad of supply that we had talked about here on Monday. Now the June futures are practically guaranteed to reach a minimum 1321.75, equivalent to an approximately 100-point rally in the Dow Industrial Average. Since we treat all such crazed leaps as the potential last gasp of the now three-year-old Mother of All Bear Rallies, we’ll be looking to get short in the right place, presumably with a stop-loss we can easily manage. From a hidden-pivot perspective, there are only two places this rally could flame out, so it will be well worth our while to lay out some tightly stopped shorts at each.

Our first clue that we should not attempt to impede the bulls too aggressively will come at 11209.13, basis the DJIA, and then at 11232.10. A close above that last number, a hidden pivot, would all but clinch a run-up to 11400+. FYI, gold should be moving more or less in-synch, since the last gasp of yesterday’s robust rally created a promising impulse leg on the hourly chart. If you study the chart above, you’ll see that the April contract did not call it a day until it had surpassed a tiny peak recorded on March 8 at 552.50. A subtle accomplishment for sure, but it should be viewed as a reliable sign nonetheless that the rally in gold is likely to continue.

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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 © 2005, Rick Ackerman. All Rights Reserved. www.rickackerman.com 

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

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