-- Posted Friday, 18 June 2010 | Digg This Article
| | Source: GoldSeek.com
Rick’s Picks
Friday, June 18, 2010
“Phenomenally accurate forecasts”
Like frightened little rabbits, shorts panicked once again late in the session, goosing the Dow 100 points in the final 30 minutes (see chart below). In the end, predictably, they wound up doing exactly what they had sought to avoid. Don’t these guys understand that if they all hung together and chilled for a rare change, the broad averages would come cascading down like a tropical downpour, ending a selling drought that has persisted for more than a year. You’d think that the May 6 “clerical accident” might have emboldened at least some of the “Don’t Pass” bettors. Evidently not.
The way things stood Thursday afternoon, the rabbits had only set themselves up for more punishment later in the day, since nothing short of Armageddon could cause DaBoyz to relinquish the choke-hold they had around the rabbits’ necks at the closing bell. A silly image, we know – a mustachioed, Simon Legree character with a bunny locked in his armpit, its little pink eyes bulging from their sockets. But in truth, those who have been betting against the market lately don’t deserve to be called bears. They don’t roar, they don’t rear up ferociously on their hinds when challenged -- they just nibble on lettuce and extrude little pellets when nervous.
Fresh Pellets
Friday morning could produce a fresh pile of pellets if there’s any good news on the tape to help DaBoyz maintain their short-squeeze choke-hold. The Dow closed at 10434, but according to our proprietary Hidden Pivot forecasting system, there’s 138 points of open space just above if bulls are in command at the bell. That implies a run-up to at least 10582, which is the next place the rabbits could attempt to impede the rally without getting damaged too badly, at least not right away. But if the pullback we might expect from 10582 proves feeble or short-lived, woe to the bunnies, since they could wind up chasing the blue chip average all the way up to 11000 before they get a real breather.
A Bullseye in Gold
Speaking of the Hidden Pivot forecasting system, it produced a bullseye in Comex Gold yesterday after we’d sent out a heads-up to subscribers the night before identifying a 1250.30 target for the August contract. The futures did in fact rally $20 -- precisely to 1250.30 -- before tracing out a shallow correction over the next two hours. We expect the next leap to achieve 1272.60 just as precisely and easily. Judging from how quickly the futures got second wind yesterday, a move to that Hidden Pivot could occur as early as Friday morning.
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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. There is a substantial risk of loss in futures and option trading, and even experts can, and sometimes do, lose their proverbial shirts. 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 © 2010, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Friday, 18 June 2010 | Digg This Article | Source: GoldSeek.com
