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-- Posted Friday, 16 October 2009 | Digg This Article | | Source: GoldSeek.com
Rick’s Picks Friday, October 16, 2009 “Phenomenally accurate forecasts” December Gold has sold off mildly so far after peaking within inches of a 1074.50 rally target drum-rolled here a while ago. We see little reason for concern, since the futures would need to fall all the way to 983.10 to create room on the daily chart for doubts. Actually, we’d view any pullback into the range 1057 (already achieved) - 1019 as a terrific buying opportunity, since it would take only a $20 booster rally thereafter to set gold in motion toward the next key threshold, 1134. The dollar’s bearish chart would seem to corroborate a bullish outlook for gold. Although mysterious forces caused the Dollar Index to spike higher during yesterday’s session, the flurry of buying was short-lived, and by day’s end the dollar was little changed. That’s about as good a day as the dollar seems capable of having any more. 
While gold was getting roughed up, stocks were climbing out of a hole created by the cratering of financial stocks. They fell hard on the opening, ostensibly because Goldman Sachs reported a near tripling of earnings since the last quarter. If the logic of this seems unclear, you can take your pick from a slew of dumb explanations. Some pundits said Goldman’s spectacular performance underscored the relative weakness of its competitors. If that were true, however, then why should Goldman shares have fallen nearly $4? One tried-and-true explanation that we were surprised not to have heard is that Goldman’s $5.18 billion quarter somehow disappointed the analysts. Willed by the Cosmos Our explanation, as always, is that the financial stocks were cyclically primed to fall no matter what the news. And so they did, burning us mildly when we jumped on some out-of-the-money call options in Citi at the bell. The finished the day at a dime, 50 percent less than the 15 cents (i.e., $15) we’d paid for them. But we have no qualms about holding onto the little pups for a while, since it still seems like a good bet that Goldman, once it recovers from its manipulated swoon, will continue to drag the entire, blighted financial sector higher in the weeks and months ahead. *** Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not b 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 Friday, 16 October 2009 | Digg This Article | Source: GoldSeek.com
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