-- Published: Thursday, 27 August 2015 | Print | Disqus
A Hidden Pivot target that I’d posted in the chat room Tuesday came within a few ticks of catching the low of yesterday’s monster rally (see inset). The trade could have been worth as much as $4600 per contract so far. Regardless of whether you caught the move, it has important implications going forward — especially if you are a bear panting for the chance to short into strength. It’s tempting, especially if you believe, as I do, that we are in a full-blown bear market that has a very long way to fall. However, because so many traders sees the rally as highly unlikely to achieve new record highs, it is bound to lure more than a few bears into acting recklessly. Predictably, the shorter they get, the more the rally will gain in power when they have to cover.
Bottom line, we should be prepared for the sort of rally that defies logic and reality and which will exceed all expectations. We’ll have a better feel for its power once we’ve seen how minor corrections play out and the ease with which minor rally targets are exceeded (or perhaps not). If corrective moves do NOT reach their targets, that will be our first clue that the countertrend will. That is precisely what happened at Tuesday’s 8:30 p.m. low: The futures reversed from a ‘midpoint pivot’ at 1851.75 and never looked back.
For real time updates as more craziness unfolds, stay tuned to the chat room, where a hundred Pivoteers will be on hand to provide the play-by-play, just as they’ve been doing. Click herefor a free two-week trial subscription to Rick’s Picks that will give you instantaccess not only to daily trading ‘touts’, bulletins, updates and impromptu trading sessions, as well as to a 24/7 chat room that draws veteran traders from around the world.
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com,
is strictly prohibited. In no event shall GoldSeek.com or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.