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-- Posted Tuesday, 17 July 2007 | Digg This Article | Source: GoldSeek.com

Rick’s Picks

Tuesday, July 17, 2007

“Phenomenally accurate forecasts” 

I was away from my office and the Rick’s Picks chat room Monday, returning from a weekend with a college buddy, Peter Ricciardelli, who lives in Telluride. The loop that I drove took in some of the most scenic vistas in the Rockies.  On Saturday morning, I had dropped my son off for a week of kayaking on the Green River in Utah. We arrived at his rendezvous point a little early, and I mistook a rugged-looking bunch of smokejumpers for kayakers. They had come to Grand Junction, Colorado, from Utah but were being redeployed to Washington State, where, they said, some bad fires had recently erupted.

After depositing my son with his river group I headed south to Telluride, pulling into town just as the sun’s last, brilliant rays were setting the peaks ablaze. The next morning, Peter and I went aloft in his single-engine Cessna, taking in the scenery from around 17,000 feet. The view from this height is quite different from the one we see from commercial jetliners, which typically fly at more than twice our altitude. Our 45-minute tour overflew the Silverton-Durango train line, a narrow-gauge railroad built in the 1880s to haul ore from the San Juan Mountains. It’s one of the top tourist attractions in Southwestern Colorado, and although my wife once worked as a guide for tours that came through that area, we’ve yet to take a family ride aboard the coal-powered Silverton-Durango train.

No Surprises

I arrived home early Monday evening, having failed to beat the Denver rush hour. The markets appear to have done little in my absence.  We were looking to get short in a few select vehicles, but only Google among them made it to its rally target. This implies the broad averages will soon be in bullish gear again and moving higher, since Google is as good a proxy as we could have for the lunatic mentality that has been driving stocks into thinner and thinner air. Google need only have exceeded a Hidden Pivot at 555.76 by a few pennies to show its pluck, but the stock obliterated that resistance on its way to an intraday high at 558.58.  The $3 overshoot all but clinched a thrust to a new Hidden Pivot that I’ve identified in today’s Touts. Since the new target has been a while in coming, we might expect a tradable correction when the stock gets there. However, it’s still too early to determine how much the August near-the-money puts will be selling for at that time, so we’ll hold off on detailed instructions for now.

Gold also disappointed when the August Comex contract popped a few ticks above a midpoint Hidden Pivot in the early going, only to succumb to gravity just as quickly.  The move above the midpoint resistance was bullish, but I’d stipulated that the futures would need to close above it to signal an imminent thrust to our next target, a moderately ambitious one.  However, despite yesterday’s weakness the futures remain in good position to make their move. Indeed, the target will remain viable as long as 660.30 is not breached to the downside. 

***

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 © 2007, Rick Ackerman. All Rights Reserved. www.rickackerman.com 

-- Posted Tuesday, 17 July 2007 | Digg This Article | Source: GoldSeek.com

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