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-- Posted Tuesday, 30 June 2009 | Digg This Article | | Source: GoldSeek.com
Rick’s Picks Tuesday, June 30, 2009 “Phenomenally accurate forecasts” We thought it would be a good time to look in on our favorite bellwether, Goldman Sachs (GS), since the extraordinarily well-connected banking firm’s shares have been sharply on the rise lately. As long as this is the case, it makes a stock market selloff most unlikely. GS has rapidly emerged from a funk after having spent nearly a month in purgatory – its penance for a wilding spree that that culminated a penny above an important Hidden Pivot resistance we’d flagged in late May at 151.24. The stock yesterday closed on a recovery high at 149.41 but looked feisty enough to keep moving higher. Most immediately, this would imply a leap of nearly 3 percent, to 153.44, but the stock has a shot at as high a 160.44 if the lower number fails to contain demand. 
If the more bullish scenario were to play out, it would imply that the uptrend is likely to continue till at least July 10, a Friday, or possibly into the next week. There is nothing directly comparable in prospect for the Dow Industrials, since, for the last week or so, the blue chip average has been relatively weak in comparison to Goldman. But if financial shares should catch fire and the heat spreads to the broad averages, a run-up in the Dow to 9005, or perhaps even to 9333, is possible. Those targets represent bullish moves, respectively, of 5.5 percent, or of 9.5 percent, from yesterday’s closing price of 8529. Gold ‘Comfortably’ Aloft A bullish period for stocks would likely intensify the tedium that has characterized the precious metals sector lately. We forecast dull action in Comex Gold as the new week began yesterday, and the futures did nothing to surprise us. We see bullion’s tiresome action as bullish on balance, since there have been times in the not-too-distant past when a period of strength in the broad averages might have sent bullion significantly lower in search of a comfortable place to hover. However, it should not go overlooked that Gold looks plenty comfortable these days maintaining a cruising altitude above $900. *** 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 Tuesday, 30 June 2009 | Digg This Article | Source: GoldSeek.com
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