-- Posted Thursday, 22 February 2007 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Thursday, February 22, 2007
“Phenomenally accurate forecasts”
Bullion’s explosive move yesterday was attributed to a few factors, including short-covering, but the bottom line is that bullion futures appear primed to blow the supposed $700 barrier to smithereens. That would be nicely in line with our recent forecast, which was given here earlier in the week as follows: “There is granite resistance just above, at the confluence of two important Hidden Pivots, 680.60 and 682.00. If the futures jackhammer their way past those numbers, we can confidently infer that they are about to trash the psychologically important $700 barrier with equal aplomb, turning it from resistance into incipient support in mere days.”
No question, a jackhammer effect was what we witnessed. The April Comex contract rocketed $20 off its intraday low, pausing precisely at our 680.60 target for all of 20 minutes before making a final thrust to 686.40 to end the day. The relatively shallow pullback in after-hours trading suggested that bulls were fixing to romp once again, warning bears to think twice before taking a stand at $700.
Reuters take on the rally evinced the kind of cluelessness that can only embolden buyers:
“U.S. gold futures surged more than 3 percent on Wednesday after a pullback in the previous session, as technical and fund buying, higher oil and geopolitical tensions pushed the precious metal closer to the $700 an ounce psychological mark.” What a bladder-bag of mush! You’d have to be an old-timer to recall the last time “geopolitical tensions” were cited as a reason for gold’s strength. Indeed, the price of bullion seems to have decoupled from world events in the 1970s. Has that link returned? Whatever the case, bulls should take heart in the fact that Gold’s biggest rally since June has evidently confounded the business-page scribes. Bullion will be pushing $900 an ounce before they figure it out. We don’t know what’s going on either, but if the $700 barrier is chop suey within a week, we can probably infer that something BIG is percolating beneath the gnarly surface of world events.
***
Tahiti Seminar
Tahiti!? I just wanted to see if you were paying attention. In fact, I’ve received numerous requests to offer a Hidden Pivot seminar in Boca Raton, Florida, though not in the South Pacific, and will do so if there is sufficient interest. Please let me know if you would be seriously interested in attending a Florida class. The two-day session would be held sometime in the Spring of 2007. To get on my mailing list, drop me an e-mail, including your contact information. The cost would be $1,500 USD.
***
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, 22 February 2007 | Digg This Article | Source: GoldSeek.com
