-- Posted Sunday, 7 January 2007 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
“Phenomenally accurate forecasts”
We caught the exact low of gold’s $23 plunge in the chat room Friday with a 603.00 projection, but I wouldn’t count on it to hold. The good news is that a promising Hidden Pivot support lies not far below it at 594.50. It looks capable of engendering the turnaround so many have been patiently awaiting for so long. If the action in February Gold plays out as expected, it would correspond to a 40.94 downside target in Newmont Mining that was flagged here recently.
Even though the bear cycle apparently has further to go, we jumped on DROOY shares nonetheless, since the stock has been making its way down to a Hidden Pivot target at 0.76 for quite a while. Officially, we bought a thousand shares at 0.78 on Friday, using a relatively wide stop-loss. A trader in the chat room reported buying 100,000 shares at the low of the day, 0.76, and this may have played a role in the stock’s subdued histrionics near the end of the session.
The Usual Idiots
We also nailed Friday’s low in the mini-euro within a single tick, although the trade I’d advised was timed out. The day’s first pass at the euro’s Hidden Pivot target – a brutal 70-tick plunge that occurred in the space of mere minutes – failed by nine ticks to reach it. Thereafter, it took a little more than two hours for the futures to work their way down to the pivot, 1.3025, making their actual low at 1.3024. I didn’t mention it in the chat room, but the resilience of the low could tell us whether the dollar’s corresponding strength – and therefore gold’s ongoing weakness - is likely to continue. If the low is easily breached within the next day or two it would imply that there are still plenty of euro sellers out there.
Regarding the stock market, Friday’s sell-off can be ascribed to the usual bunch of idiots responding to stronger-than-expected (by whom?) payroll numbers. If the Fed “easing” junkies want to be reassured that the economy is not merely weak but verging on collapse, they need only procure a copy of The Richebächer Letter, which spells out exactly why this is so in language that only an economist schooled in the U.S. could fail to understand.
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London Seminar
A Hidden Pivot seminar in London appears likely, judging from the strong initial response. If you’re interested in attending a two-day class there, probably sometime in the spring of 2007, please let me know via e-mail, including your contact information. The cost would be $1,500 USD.
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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, 7 January 2007 | Digg This Article | Source: GoldSeek.com
