-- Posted Sunday, 18 June 2006 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Monday, June 19, 2006
For investors who’d rather be smart than lucky
Friday proved to be a triple-witching dud, the broad averages having shown no pluck at all following their whoopee cushion rally a day earlier. Still, by next Wednesday it could look like a one-day pause in a short-squeeze that has yet to play out. Forutunately, without much price movement, we were able able to make some position adjustments that have pared risk in some of the stocks we hold. For starters, we sold, for 26.92, half of the Goldcorp shares we’d acquired 26.04, giving us a cost basis of 25.16 for what remains. When I issued the sell recommendation intraday via the bulletin launcher, I advised you not to look back: “The stock looks like it could move higher, possibly even reaching the target before the session ends, but we are selling some shares at this level nonetheless because, as the old saying goes, no one ever went broke taking a profit.”
As it happened, Goldcorp was just getting second wind, staging for a push to an intraday high of 27.38, where it settled at the close. The rally is encouraging, for sure, but Goldcorp will still need to push up to at least 28.73 early next week to create a minor impulse leg sufficiently robust to sustain the stock’s nascent bullish momentum.
Smooth JetBlue Flight
We also took some partial profits in JetBlue, which we’d held with a costs basis of 8.64. After selling another hundred shares of it yesterday within 10 cents of the intraday high, the cost basis for the round lot we still own is 5.40. JBLU ended the week at 11.58 after peaking intraday at 11.98. We also had a few short offers out -- in the Mini-Dow, Beazer Homes and the Mini-S&P. All of these vehicles head-faked on the opening to within shouting distance of our offers, but none quite made it all the way. Assuming stocks get another short-squeeze goosing next week, as I expect, we could be gifted with an even better opportunity to get short ahead of the next leg down.
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Gold’s Correction
My friend Larry Amernick, editor of The Amernick Letter, has just published a technical report on Gold that asserts the correction still has a ways to go. His outlook for the intermediate term is more bearish than mine, with precise targets that come from Standard Error Bands rather than hidden pivots. This is a must-read, so watch for instructions on how to retrieve the report in the Intraday Notes section of Rick’s Picks over the weekend.
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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 on October 14-15, so please let me know via e-mail if you think you might attend.
There will be just one more U.S. seminar offered after that, on the West Coast; and another in Sydney, Australia, but they will likely 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 the New York seminar is within a few seats of being sold out.
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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 Sunday, 18 June 2006 | Digg This Article | Source: GoldSeek.com
