-- Posted Wednesday, 7 January 2009 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Wednesday, January 7, 2009
“Phenomenally accurate forecasts”
I had expected 2009 to begin with gold sharply on the rise and stocks in retreat, but so far both seem to be taking direction from a headless chicken. Stocks lurched higher last Friday on a short squeeze but have since gone erratically flat. As for commodity gold, it has been pretty wild the last few days but is still trading somewhat below its New Year’s peak, even after yesterday’s trampoline recovery.
That may be about to change, however, since there were bullish signs in the price action of precious-metals bellwether Newmont Mining. Specifically, the broad-tossers who make their living rigging the stock were able to turn an 86-cent profit in the early minutes of the session by deftly working the “buy” side. This they accomplished by fading sellers on moderate weakness, then running up the stock by about 2%, All of this occurred, probably, before many of those sellers realized they’d been had -- filled at what turned out to be some of the worst prices of the day.
Incidentally, if the high achieved in the opening minutes had held for the remainder of the session, we’d have been bearish coming in Wednesday morning. However, although Newmont subsequently dipped slightly beneath the opening lows, relentless buying drove the stock steadily higher for the next several hours. As a result, fully half of the day’s action took place above the opening peak. This seems quite bullish to us, and it would be affirmed by a gap-up opening today. That’s what we might expect if there is too much demand to allow DaBoyz to pick off sellers on the opening, as they did yesterday. Which is to imply, if the pros can’t steal the stock, they will often employ the opposite strategy, ripping off buyers at as high a price as possible.
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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
-- Posted Wednesday, 7 January 2009 | Digg This Article | Source: GoldSeek.com
