-- Posted Friday, 30 June 2006 | Digg This Article | Source: GoldSeek.com
Rick’s Picks
Friday, June 30, 2006
For investors who’d rather be smart than lucky
I had to peek at the Wall Street Journal’s market round-up to find out what allegedly caused yesterday’s wilding spree on the nation’s bourses. Here’s the answer: “Dovish overtones in the Fed’s rate announcement.” No kidding? Well, I guess if the U.S. Supreme Court can operate within a “penumbra” of subtle inferences, then so can the Federal Reserve’s open market committee. But I’m still not sure how dovish the Fed intended to be. Here’s a quote from a statement released yesterday by the central bank: “Recent indicators suggest that economic growth is moderating from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices." But haven’t we heard this before – like, maybe a dozen times? No matter. Again, here’s the Wall Street Journal with an explanation that goes down like a chocolate malt with a burger and fries: “Investors interpret the language as less hawkish than some had feared.”
Good enough. But now let me give you the not-ready-for-prime-time explanation: End-of-quarter window-dressing by money managers provided a perfect opportunity for the dirt bags who run what is essentially a rigged game to squeeze the living bejeezus out of shorts. And if that sounds like sour grapes, you might be interested to know that Rick’s Picks had nary a short out yesterday. To the contrary, we’d been long some July 39 QQQ calls ahead of Thursday’s announcement -- until I advised bailing out of them with a small loss after Wednesday’s glum performance. Fortunately, a few subscribers showed a little more gumption -- Stephen M., for one, who wrote me as follows: “Picked up 300 [of the July 39s] at $0.45 on your recommend, doubled down at $0.33 and closed at $0.60. Gain: $11,500 -- a 49% profit in two days. Thank you very much.” Your welcome, Stephen. Maybe you can take me to lunch next time I’m in town?
Looking ahead, if you can contrive to tune out the inevitable hype over yesterday’s 217-point gain in the Dow, it might help you assess whatever happens next with a cold and dispassionate eye. Monster rally aside, this market still stinks to high heaven as far as I’m concerned. We’ll go with the flow nonetheless, and perhaps try to short some promising head fakes in such worthies as Beazer, Citigroup and Fannie Mae. In the meantime, don’t get taken in by all the hoopla. It’s just a side-show for suckers.
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Vancouver Seminar a ‘Go’
The Hidden Pivot Seminar in Vancouver is a definite “go” for the last weekend in October, so please let me know via-email if you’re interested in attending. The event is being produced by a long-time Rick’s Picks reader who wants to introduce his investment clients to my technical methods.
The two-day class is geared to teaching traders of all skill levels the rudiments of my proprietary Hidden Pivot System. Post-grad mentoring in a chat-room is included so that students can master the techniques learned in the classroom in a real-time setting.
A Student’s Experience
Here is what one of my grads, Hunter Reynolds, had to say the other day about the chat room:
"We have all come a long way. I think everyone here is making a little $$, or we would be doing something else by now. I can honestly say I am up about ten percent, maybe a little more, since your class. I am pretty conservative. I just trade from the long side, but I'm getting really good at picking the hidden-pivot reversal points for the uptrend!"
Dates are not yet firm for seminars to be held in San Francisco and Sydney, Australia, but it looks like they will take place either in November 2006 or February 2007. Both classes are filling up, so let me know soon if you’d like to attend.
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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 Friday, 30 June 2006 | Digg This Article | Source: GoldSeek.com