-- Posted Thursday, 7 May 2009 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Thursday, May 7, 2009
“Phenomenally accurate forecasts”
Although we remain as bearish on the U.S. economy as anyone we know, our obsessive focus on the shares of Goldman Sachs has kept us unwaveringly bullish throughout the stock market’s spectacular bear rally. Most recently, ever since Goldman hit a bullish tripwire at $121 a couple of weeks ago, we’ve been looking for the stock to continue up to at least $144.19. That’s a key resistance that we refer to as a Hidden Pivot, and it has the potential to stop the rally cold.
For a while yesterday it looked like the pivot might be tested: The stock shot up to $140.36 late in the session, but a swoon in the final hour postponed a rendezvous with the target that seems all but unavoidable by week’s end. The apex of yesterday’s move marked a $14 gain since Monday, a powerful surge that places Goldman among the high-beta leaders of the Big Board. But the Dow was up a hundred points as well, settling near the intraday high and leaving shorts on the ropes at the final bell.
Apple and Google Targets
We have rally targets outstanding in a few other trading vehicles, making it even more likely that we’ll be hearing from the Fat Lady sometime soon. Apple shares, for one, have room to move before they hit an important Hidden Pivot resistance, and so do the shares of Google. Coming in yesterday morning, we had recommended buying Google put options if the stock hit 407.78, which it did. However, the actual high at 408.28 occurred on a $6 short-squeeze in the opening seconds of the day, before trading in puts and calls had begun in earnest. The stock subsequently fell back $7, and it’s still unclear whether we should be disappointed about being shut out of the puts. That’s because the stock looks like it will go to $439 if it closes above the Hidden Pivot at 407.78.
Concerning the precious metals, they continue to impress by more than holding their own against Wall Street’s running of the bulls. As noted here yesterday, Comex June Gold, currently trading near $910, will need to touch $935.90 to inflict real pain on shorts; however, the futures look quite comfortable in the meantime building a base above $900 for the inevitable launch.
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Rick's Picks publishes a daily trading newsletter for gold, stock, commodity, and mini-index traders 240 times per year. 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 © 2009, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Thursday, 7 May 2009 | Digg This Article | Source: GoldSeek.com
