-- Posted Friday, 24 March 2006 | Digg This Article | Source: GoldSeek.com

Rick’s Picks

Friday, March 24 2006

For investors who’d rather be smart than lucky 

Crude oil prices reportedly “worried” investors yesterday, perhaps because there was nothing more menacing in the news. But look at the chart below. It doesn’t take a technician to see that the current uptrend in prices is yet another gratuitous stab into the mid $60s, as likely to be followed by a $4 or $5 decline as high tide is by low.  Face it, if Katrina couldn’t push spot quotes up to $100 a barrel, than what would?**  But prices at the pump are another matter. I’ve never put $50 of gas into a car’s tank, but I came pretty close yesterday and would have achieved that dubious milestone if there hadn’t been a couple of gallons left in the tank. I hadn’t filled it in quite a while and was therefore unaware that premium had crept back up to $2.65 a gallon hereabouts. Ordinarily, the local newspapers keep this story in our faces, but I guess we’ve all been conditioned by now to simply shrug at anything less than $3 a gallon. But do the editors know that seasonal factors are actually restraining gasoline prices at the moment and that a 30% increase between now and the beginning of summer would not be the least bit unusual?

If so, they’ve kept pretty quiet about it.

** Yes, I know: a sidewinder missile taking out a supertanker in the Strait of Hormuz or the Suez Canal. But so far, most fortunately, the world’s luck has held out.  

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Updates for Friday, March 24 2006

HUI Gold Bugs Index (303.41)
03/23/2006 21:45:57 EST 5719
Yesterday's rally didn't change any of the correction targets identified in yesterday's commentary, but we should be alert nonetheless to the possibility that the Gold Bugs Index will take off without any further correction. It would take a print at 306.75 to invalidate my downside targets, but considerably more than that -- i.e., a move above 326.43 -- to decisively end the correction begun in early February from around 349.48.

 

03/24/2006 11:41:54 1
Newmont Mining (NEM) (49.97) Here's a heads-up for all of you Newmont fans: The stock appears bound for a hidden-pivot resistance at 51.76, nearly a dollar above today's so-far high. NEM is all but guaranteed to reach the target, so we'll have an opportunity to gauge trend strength when it gets there. If Newmont can close above the pivot the day it first touches it, we can confidently infer that more strength will follow. The next test would come at 54.87, where a peak was made on March 2 on the way down.

***

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 Friday, 24 March 2006 | Digg This Article | Source: GoldSeek.com

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