-- Posted Thursday, 19 April 2007 | Digg This Article | Source: GoldSeek.com

Rick’s Picks

Thursday, April 19, 2007

“Phenomenally accurate forecasts” 

The “Zimbabwe Effect” continued to rule yesterday on Wall Street, setting up the Dow Industrial Average for an almost certain push to new all-time highs in the coming days.  Recall that Zimbabwe’s stock market reportedly has been the hottest in the world, notwithstanding the fact that the nation itself is one of the worst basket cases on the African continent. The U.S. economy is not a basket case, at least not yet, but certain factors that could conceivably make it so, including a looming housing bust of epic proportions, are so palpable that one can only infer that buyers of U.S. stocks at these rarefied levels must be in the grip of some Zimbabwean-like madness.

And what makes us so sure that stocks are headed into record territory? Simply this: A futures contract that we trade and recommend regularly has yet to reach a rally target that has been more than a month in coming. Specifically, we’re looking to get short the E-mini S&Ps at exactly 1393.25, if only as a swing- or scalp-trade. Yesterday this vehicle got as high as 1384.50 – a six-year peak – but that’s still a tad shy of our target. Assuming it gets there -- which it will -- the Dow Industrials would need to rise by about 100 points to keep pace, putting the blue chip average at new record highs. We’ll lay out some short cautiously if the opportunity presents itself, but we shouldn’t expect it to be the Mother of All Tops.

For more important targets, including our immediate objective for June Gold, check out the Touts for Thursday at the Rick’s Picks home page.  

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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 Thursday, 19 April 2007 | Digg This Article | Source: GoldSeek.com

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