-- Posted Thursday, 28 September 2006 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Thursday, September 28, 2006
For investors who’d rather be smart than lucky
Gold jumped back on a bullish track Wednesday as December futures pushed above a benchmark at 607.10 that we’d flagged here a couple of days earlier. From a Hidden-Pivot perspective, this feat would look more promising if the move above the two prior peaks shown in the chart had occurred in a single bound, so to speak, rather than in two separate segments. But the rally was nonetheless sufficient to lift the burden of proof from the bulls, at least for the moment, and to imply that buyers of bullion and precious metal shares may have the wind at their backs for a change.
One simple but reliable way to predict whether a rally is likely to continue is to ascertain whether each new thrust on the hourly chart has surpassed a visually distinctive peak to the left of it. A rally that falls just shy of this mark invites skepticism. Indeed, every new push above a prior peak or peaks, especially those recorded during the preceding and perhaps still-dominant downtrend, should be viewed as renewing and reinvigorating the bull. This mode of analysis is a key feature of the Hidden Pivot method, and it can be used not only to predict short- and intermediate-term price swings very precisely, but also to gauge a trend’s staying power with a high degree of confidence.
We did just that in Newmont Mining yesterday, by the way, projecting a rally top at either of two closely spaced Hidden Pivot targets not far above Tuesday’s settlement price. As it happened, the stock head-faked moderately higher in the opening minutes of the session, topping for the day at 44.15, the precise midpoint between our two targets, 44.10 and 44.21. Newmont plummeted $2.40 thereafter, or more than five percent, before bottoming at $41.75.
***
Free Hidden Pivot Calculator
The Hidden Pivot seminar next month in New York City is sold out, but there are still a few seats left in the three others that are planned: Vancouver (October 28-29); San Francisco (November 11-12); and Sydney, Australia (December 2-3). You can request a registration form and further details by clicking here. And, if you act now, there is still a chance to claim a free Hidden-Pivot calculator and one of our snazzy Rick’s Picks combed-cotton polo shirts in your choice of colors.
***
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 Thursday, 28 September 2006 | Digg This Article | Source: GoldSeek.com
