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Don’t
let this nasty shakedown in bullion scare you. For the record, we are quite
confident that gold and silver will be back on track soon, bounding toward
new record highs. But both may have a little farther to fall if forecasts
disseminated earlier to Rick’s
Picks subscribers prove correct. Specifically, we’ve been
drum-rolling a possible 1709.20 bottom for Comex
December Gold, and a 35.70 low for December Silver. As of yesterday, the
latter had overshot its target by 18 cents, hitting a 34.53 low that in a
single day shaved 10 percent off the value of the world’s store of
silver. Gold, for its part, didn’t quite reach the 1709 target, instead
turning higher from 1723.20. We think the December contract’s so-far
$29 bounce from that number will prove short-lived and that the futures will
make an important low at or very near 1709.20 today or Monday. If so, this is
likely to put pressure on Silver, perhaps pushing quotes below $35 for a day
or two. In any event, if the selloff in bullion is not over already, it will
be soon.
Those
who follow Rick’s Picks
closely would not have been surprised by yesterday’s across-the-board
avalanche in commodities and currencies. The night before, a commentary
bearing the headline “Strong Dollar Predicting Europe’s
Breakdown” went out to subscribers and readers. Our actual target for
the Dollar Index lay well above, at 79.86, but yesterday’s explosive
move came within 1.06 of hitting it. We remain confident the target will be
achieved, albeit perhaps considerably earlier than we might have expected. If
so, yesterday’s dramatic unwinding of the so-called “risk
trade” has farther to go. How much farther? We’ve provided
subscribers with a precise target for the December E-Mini S&P futures,
and although the carnage could conceivably end with a relapse today down to
1088, about 20 points (or 160 Dow points) beneath yesterday’s low, any
slippage beneath that number would, from a technical standpoint, have
potentially grave consequences for the near and intermediate term.
We’ve also included in today’s “Touts” section of Rick’s Picks a precise and
extremely bullish forecast for T-Bond futures that if correct implies that
long-term interest rates are about to fall to levels that few have imagined,
at least in print.
Rick Ackerman
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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 © 2011, Rick Ackerman. All Rights
Reserved.
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