-- Posted Tuesday, 12 February 2008 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Tuesday, February 12, 2008
“Phenomenally accurate forecasts”
It was springtime on Wall Street yesterday as bulls evidently seized on the notion that an economic rebound is right around the corner. This nutty idea brought the shares of General Motors in particular to a froth. The stock rallied 6% in the space of six hours, settling back 50 cents to end the day at 27.08. That’s nearly 40 percent below the exuberant peak of $43 registered back in October, but, hey, you gotta start somewhere. Besides, GM has one thing going for it that investors apparently hadn’t thought of before yesterday: GM is not Chrysler. Now there is a basket case!
Both companies could use a shot in the arm, for sure, and who’s to say it won’t come in the form of those $1,200 rebate checks from Uncle Sam? The automakers long ago discovered they could keep the assembly lines humming, and build a loan business, by simply giving cars away – “Buy Now! No Money Down, and Zero Percent Interest for Six Years!” Just imagine how many cars they’re going to move off the lots if Joe Consumer is about to walk into the showroom with $1,200 burning a hole in his pocket. We can see the promotional banners already, promising two-fer deals like never before: “Buy a Chevy Tahoe and take home a free, low-mileage Pontiac Aztek.”
Very Squeezable
If we sound skeptical, you shouldn’t necessarily assume that we are eager to short this market. Far from it. As we mentioned in yesterday’s touts, it feels like DaBoyz could hold stocks near these levels for as long as they please – until, say, the right piece of news comes along to trigger off a spectacular short-squeeze. We can’t imagine what the news would have to be, but with investors so deluded, apparently, that they are diving back into auto stocks, it wouldn’t take much to touch off a bullish stampede. Besides, the bad news has been streaming so relentlessly – yesterday it was AIG’s $5 billion derivatives loss – that investors may have reached the point of numbness. If so, and they are about to drive our favorite little cinder block, Citigroup, temporarily above $30 with frenzied, ill-considered buying, how could we but applaud?
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Who Needs a Guru?
When the Hidden Pivot seminar that was held last weekend sold out, I added an additional session on March 8-9. If you’d like to attend, click here for further details and instructions on how to register. The class will be held on Saturday/Sunday from 9:00 a.m. to 12:30 p.m. Mountain Time. If you want to learn how to forecast stocks and commodities as confidently and precisely as top pros, this is an opportunity you should not pass up.
Oz-Hours Class
I will also be offering a class in February that is tailored to the scheduling needs of students from Australia, New Zealand and Singapore. If you live in Sydney, this seminar will take place on February 21-22 (Thursday and Friday), from 3:30 p.m. to 7 p.m. These hours will also work for early risers in Western Europe. For further details, click here. You can also register directly by clicking here, then on the “Upcoming” tab.
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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 © 2008, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Tuesday, 12 February 2008 | Digg This Article | Source: GoldSeek.com
