|
-- Posted Wednesday, 14 July 2010 | Digg This Article | | Source: GoldSeek.com
Rick’s Picks Wednesday, July 14, 2010 “Phenomenally accurate forecasts” U.S. stocks took yet another idiotic leap yesterday, presumably buoyed by news of a ghastly increase in the U.S. trade deficit. Of course, on Wall Street these days, all news is fabulous news, and so no one should have been surprised when the broad averages leaped to embrace and celebrate this latest, absolutely appalling evidence of a failing U.S. economy. The Commerce Department reported that imports exceeded exports by $42.3 billion in May. A dip below April’s already frightening enough $40.3 billion deficit had been expected, but it was simply not to be. One analyst attributed the latest increase in imports over exports to the stockpiling of Chinese goods by U.S. retailers and producers fearful of a trade war. If so, Wall Street’s best and brightest are bound to see this prospect as a win/win development, since the very process of losing such a war would necessarily ratchet up the flow of cheap Chinese goods into the U.S., stimulating more borrowing by American consumers. That should please the Keynesians, too, since it would give the nation’s tireless, ever-patriotic shoppers a chance to pick up the apparent slack in government borrowing caused by a growing reluctance on Capitol Hill to ratchet up the U.S. debt ceiling beyond its current, so-far ineffectual, threshold of $13.2 trillion. Rally Suits Us Fine Meanwhile, if stocks should continue to rise it will suit us just fine, since the rally so far has been as predictable (and therefore easily tradable) as the spread of Chlamydia among U.S. teenagers. On Monday night, for instance, with index futures flatlining, we advised subscribers who monitor the markets in the wee hours to jump on the E-Mini S&Ps if the futures tripped a “buy” signal at a predetermined price. The recommendation was geared toward traders who are proficient at using the Hidden Pivot Method. In the actual event, the futures contract hit our entry trigger and never looked back, providing an uninterrupted 11-point cruise that could have been worth as much as $550 to insomniacs and traders in time zones outside the U.S. We are obliged to note as well that just because this trade worked so nicely is no reason for you to infer that we could repeat the trick even once in a thousand lifetimes. Moreover, futures trading is so very risky and difficult that most people who attempt it never even come close to succeeding. So caveat emptor! Just one last detail: There is still an important Hidden Pivot rally target remaining for the E-Mini S&Ps in this cycle. It lies at precisely 1108.25, and you can do with it what you will. *** 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 Wednesday, 14 July 2010 | Digg This Article | Source: GoldSeek.com
Previous Articles by Rick Ackerman
|
