-- Posted Wednesday, 14 June 2006 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Wednesday, June 14, 2006
For investors who’d rather be smart than lucky
Gold futures crushed an important hidden-pivot support at 599.40 yesterday, on their way to one of the worst single-day losses on record. The breach of the pivot, which I’d advertised here prominently, implies that the correction will continue to at least 549.40, basis August. That is the closest important hidden buttress beneath yesterday’s 566.80 settlement price, and it should be considered a minimum downside objective for the near-term. If achieved, it would amount to a slightly more than 25 percent pullback from mid-May’s multi-decade high near $740. However, measured from the start of the spectacular rally launched from $546 two months earlier, the correction would be approaching 100 percent.
If the support at 549.40 fails, implying the futures have exceeded it by $1.00 or more, that would have negative implications for the long term, at least in theory. Still, we would want to give the bull the benefit of the doubt, since it would take a dip below 507.50 (see chart above) to create a bearish impulse leg on the weekly chart.
For the record, I’ll note as well that the broad market looks like hell. I’ve provided a precise downside target for the Dow Industrials in the Touts section of Wednesday’s edition, as well as an analogous support in the mini-Dow futures that you can bottom-fish with a very tight stop-loss. However, if the cash-index pivot is exceeded even slightly, we would be forced to conclude that the Dow’s by then thousand-point fall is just the beginning of a decline that will prove to be far, far worse.
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Learn My Secrets
Would you like to be able to forecast trends and price reversals as accurately and confidently as Rick’s Picks? Have you tried other trading systems, only to find them too complicated or otherwise unhelpful? Then don’t miss my Hidden Pivot Seminar this autumn in New York City. Plans are firming for a weekend session in mid-October, so please let me know via e-mail if you think you might attend. This will be a no-frills version of the course that I gave in Denver, offered at a significant saving over the original price.
There will probably be just one more session offered after that on the West Coast, but that would be the last for a long while. The course includes post-grad mentoring via a chat group that some of my former students have set up. If you’ve been impressed with the accuracy of my forecasts, this is an opportunity you cannot afford to pass up. Let me hear from you soon, since seat space is limited.
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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 © 2006, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Wednesday, 14 June 2006 | Digg This Article | Source: GoldSeek.com
