-- Posted Friday, 29 September 2006 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Friday, September 29, 2006
For investors who’d rather be smart than lucky
We’re taking bullion’s possibly gratuitous ups and downs one day at a time, with results that may at times seem more gratifying to traders than to long-term investors. Fortunately, some of the gold bulls who have been active in the Rick’s Picks chat room appear content to grab what they can, even if it means being short the stuff now and then, as at least one room denizen chose to be yesterday.
As it happened, our efforts to monitor gold’s vital signs very closely in real time yielded a short-able target for the Comex December that missed its 612.40 intraday peak by just two ticks. The trader announced to the room that he would carry the short position overnight, a decision that was not looking too shabby in the early evening. As of 9 p.m., Gold had in fact come off its highs by nearly $8, giving the short position a theoretical profit of about $800 per contract.
But with no clear downside target in sight, nor even a Hidden Pivot above to contain a possible short-squeeze, his was a risky play at best – one that would require close attention during hours that most of us would prefer to spend relaxing.
A day earlier, we had called attention to Gold’s bullish tone change based on a run-up above 607.10 in the Comex December. That signal remains valid, with no Hidden-Pivot impediments immediately above. However, there is one conventional resistance spot above yesterday’s top where we’ll be looking for buyers to prove they are serious: 621.10 (see chart above). That would mark a 0.618 retracement of September’s steep slide, and any progress above it would therefore be a welcome sign.
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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.
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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, 29 September 2006 | Digg This Article | Source: GoldSeek.com
