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-- Posted Friday, 22 August 2008 | Digg This Article | Source: GoldSeek.com
Rick’s Picks Friday, August 22, 2008 “Phenomenally accurate forecasts” Once again, crude is leading bullion around by the nose, causing the price of gold to track a presumably doomed energy rally that has been wrongly attributed to “tensions” between the U.S. and Russia. Of course, nothing of the sort is driving oil quotes higher; it is short-covering, is all, and it is unlikely to last. (When was the last time we heard the likes of Katie Couric or Tom Brokaw explain that a stock or commodity went bonkers because it had been deeply oversold?) We expect this latest wilding spree in the energy patch to carry oil into the mid- to upper $120s before prices fall anew. In the meantime, we’ll be waving a yellow flag in the chat room, lest subscribers grow cocksure about the price of gold and silver going to the moon on this run-up.
With respect to the stock market, it is not the yellow flag we are waving but a red one -- to warn against shorting too aggressively right now. Although we can think of no good reason for stocks to explode from these levels, in a bear market such as this one any of a half-dozen bad reasons will always suffice. Under the circumstances, those looking to get short yesterday evidently weren’t paying heed to the stubborn reluctance of stocks to go down when the price of crude was soaring. If crude had instead fallen, it’s likely the Dow would have been up 300 points rather than a mere 13.
In the Rick’s Picks chat room, we noted our “EXTREME” bullishness about midway into the session. Oil was up $6.20 a barrel at the time, and the Dow Industrials, off 65 points after opening down 100, were showing determined resistance to further selling. The gap-down opening was such an obvious rip-off by the specialists that only widows, orphans and pensioners could have been tricked into selling at such rotten prices. You can be certain that when specialists open a market that has been sold down overnight, they will discount their bids to fully anticipate a torrent of sell-at-the-market orders on the bell. This they did with their usual, artful brazenness; then, with selling exhausted, they ran stocks higher without much effort. Oil’s huge gains may have slowed DaBoyz’ carny-game maneuvers just a tad, but it was plain to see that the strong hands that bought on the opening had confident control of stocks all day long. We expect this crew to be out in force when stocks start trading on Friday, and to give shorts reason to be nervous about taking their positions home over the weekend.
*** Fall Seminar September 10-11
Would you like to learn how to forecast price swings and trends as accurately as gurus who do it for a living? If you think learning such skills is beyond you, then you haven’t visited the Rick’s Picks chat room lately. More and more graduates of the online, six-hour Hidden Pivot Seminar can be found there each day, comparing notes, trading confidently and forecasting with the skill and accuracy of the professional tape-watcher. But don’t take our word for it. Drop by sometime and ask a seminar graduate yourself. You can get a one-day pass by clicking here. Because seats for the class are limited, if you would like to sign up now, 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, designed for beginners).
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Winning Essays In conjunction with the upcoming seminar, we’ll soon be announcing the winners of the Rick’s Picks essay competition on the topic “How to Save America.” Over the next few weeks, the best of the more than 50 essays that were submitted will be published here. Top prize is a full scholarship to the Hidden Pivot Seminar and online tutorials, with numerous other prizes to be awarded. ***
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 Friday, 22 August 2008 | Digg This Article | Source: GoldSeek.com
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