-- Posted Tuesday, 13 May 2008 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Tuesday, May 13, 2008
“Phenomenally accurate forecasts”
Bears eager to stay out of harm’s way might want to consider taking a week’s vacation, since just about every stock we track looks like it’s headed higher – including mining shares. Issues favored by the bullish lunatic fringe in particular look explosive at the moment -- none quite so powerfully, perhaps, as Research in Motion (RIMM). Take a look at the chart below if you want to see a violent short-squeeze in action. A $3 gap on Monday’s opening left bearish bettors with no way to exit, other than by diving out an upper-story window. And it only got worse for them, since the stock barely corrected over the course of the six-hour session.
Concerning bullion, the Gold Bugs Index (HUI) showed poor relative strength, falling slightly on a day when the Dow was up 130 points. However, we don’t see this weakness continuing for long, even if precious metal shares seem likely to lag well behind crazies like RIMM, Apple, Google et al. in the days and weeks ahead. Our short-term forecast for the HUI, which settled yesterday ay 419.77, calls for a rally to at least 439.76. If things play out as expected, that would amount to a gain of slightly less than five percent.
Nature in the News
There were no headlines to drive stocks, only the unmitigated energy of short-covering in a news vacuum. Actually, the big story concerned the weather and nature on a rampage. With huge death tolls from the Burma tycoon still in the news, disaster struck in China in the form of an earthquake that shook an area almost as large as the U.S. Add to that the killer tornadoes that struck in Oklahoma, Georgia and Missouri over the weekend, and you might think “mother” nature was on a planetary rampage. The “good” news – or at least as good as it got – was that crude prices declined somewhat after a six day surge that added 12 percent to the price of a barrel of crude.
Clearly, stocks don’t need a good reason to rally right now, only the help of cyclical forces that have shown nothing but contempt for punk earnings and lousy news.
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Reserve Your Seat Now
Because seats for the recent Hidden Pivot seminar were nearly sold out, I’m offering the course again on May 21-22, from 6 p.m. to 9 p.m. Mountain Time. Click here, and then on the “Upcoming” tab to register; or here if you would like more information as well as a detailed description of the Hidden Pivot Method and a free Hidden Pivot calculator (our latest model, perfect for beginners).
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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, 13 May 2008 | Digg This Article | Source: GoldSeek.com
