Rick’s Picks

Monday, August 27, 2007

“Phenomenally accurate forecasts"

Heading into the final hour on Friday, we raised doubts in the Rick’s Picks chat room that DaBoyz had the cohones to try and squeeze stocks above daunting layers of supply. And that wasn’t our only mistake. Get this: We inadvertently transposed a 667.10 Hidden Pivot target for October Gold that had been disseminated to subscribers Thursday night for purposes of getting risklessly long in Gold.  The lamentable result was that, instead of enjoying a fabulously profitable $12 ride from within four ticks of the intraday low, we watched the whole thing from the sidelines.  Oh well. We promised to hacksaw off our left hand to atone for this error, but chat-room regulars, a forgiving lot, seemed satisfied with the verbal self-flagellation and defenestration of your editor.

Concerning DaBoyz and their always nefarious intentions, the bears just didn’t seem nervous enough on Friday to permit the painful indignity of being hoist by their own scrota. Wrong again. Instead of waiting for the weekend to pass, and with it any bad news that might have killed a short-squeeze on the launching pad, DaBoyz (aka, Dirtbags) applied a final-hour goosing that lifted the Indoos not merely above last week’s highs, but above a thick layer of supply created just before stocks collapsed on August 14. The Dirtbags must have felt pretty smug when the final bell rang, since they had left themselves in terrific shape to unload shares into a short-covering frenzy when stocks open Monday morning, or at least to sell into a flurry of buying sufficient to hold shares unched-to-slightly-higher for the first crucial minutes of the day.

Mushroom-Cloud Offset

That’s how things should play out, barring the onset of World War III over the weekend. Come to think of it, even World War III might not curtail the ardor of buyers, since anyone who went home short on Friday would naturally be worried about a possible Fed response to the now-burgeoning mushroom clouds in the distance.  In that regard, a 100-basis-point easing is probably equivalent, as an offset, to a 10-megaton bomb detonated above some expendable, second-tier city (i.e., one that has produced neither a pennant winner nor a Superbowl contender in the last decade. You know who you are -- although, fortunately, the Islamists probably do not). 

Anyway, barring the outbreak of World War III or worse, we expect the Dow Average to continue precisely to the Hidden Pivot target that was billboarded last week in Rick’s Picks. We’ll look to get short there, for sure, as how could we not? In the meantime, we’re psyched for this weekend’s Hidden Pivot seminar online, and the prospect of turning out a new cadre of agents provocateurs ready to do battle with Wall Street’s Forces of Darkness. See you in class!  

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