-- Posted Tuesday, 8 July 2008 | Digg This Article | Source: GoldSeek.com

Rick’s Picks

Tuesday, July 8, 2008

“Phenomenally accurate forecasts” 

Gold’s stumble yesterday is reason to turn mildly cautious over the near-term. On Sunday night, when actionable Touts for the next day went out to subscribers, we were looking to catch a swing low with the following advice:  “A decisive breach of the 930.90 [Hidden Pivot] support would set up a bottom-fishing opportunity at 920.20…”  As it happened, August Gold provided us with an excellent buying opportunity when it breached 930.90 and came down to 920.10, a dime from the low we’d projected. The rally from that number went nearly $7, so there was ample opportunity to allow traders who had bought at the low to exit with a nice profit.

But look at what happened when that $7 rally faded: as the chart shows, the futures went on to make an intraday low at 916.30, nearly $4 beneath the original  target. The overshoot is large enough to suggest that more selling awaits over the next day or two, although a rally exceeding 941.70 would remedy that and likely set Gold on a course toward $1000. Whatever the case, Monday’s price action may provide us with yet another opportunity to go bottom-fishing with a stop-loss of just a few ticks. Check out Tuesday’s touts for more-detailed information.

Bearish S&P Target

Regarding the S&P futures, the quite bearish target we’re using for the E-Mini contract remains valid despite the short-squeeze rally yesterday that greeted the new week. Bears are as nervous as we have seen them in a while, but the only thing they need fear is the inevitable three-day collapse in oil prices that is going to send stocks soaring.  We have a very precise target in mind where August Crude could make an important top before that happens, but rather than try to short oil futures like so many others seem to be doing, we’d rather be long call options in certain stocks that are liable to explode on an oil selloff.  This theme will be addressed in the touts section of Ricks Picks, so stay tuned.

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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, 8 July 2008 | Digg This Article | Source: GoldSeek.com

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