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The
yellow flag is out for two popular trading vehicles that Rick’s
Picks tracks closely – Comex Gold
and the E-Mini S&Ps. Is a major top in the offing? We’d say the
odds are against it for stocks, since there is little evidence that the
promiscuous Fed easing that has pumped the stock market full of hot air is
going to end, even if it is officially slated to do so in June. In any event,
we’ve told subscribers to expect a peak of at least tradable
significance in the June Mini-S&P contract at exactly 1371.00. We
routinely identify such peaks, and provide detailed recommendations for
getting short at each, although we don’t do so with the expectation of
catching the exact high of the Mother of All Bear Rallies. You might just as
well bet on a 30-to-1 horse that hasn’t finished in-the-money for two
years. Because the stock market has been chugging relentlessly higher since
March 2009, “picking the top” is never going to be an odds-on
bet. That is not to say that picking “a top” is particularly
difficult, as our subscribers would readily attest. In practice, we always
advise taking a partial profit if the pullback we expect from a Hidden Pivot
rally target is generous enough to allow it. Traders invariably make better
decisions once they’ve taken some of the house’s money off the
table, and that is why we try to take partial gains, however small, when a
trade goes our way. This also allows us to widen the stop-loss on whatever
position remains — and, in theory, to come out of the trade with a
small profit even when we are wrong about the bigger picture.
Concerning
Gold, minor, technically-derived targets have kept us quite bullish the whole
way up. But the most immediate such target is not a minor one. Rather, it is
a major “Hidden Pivot” that has been nearly three months in
coming, and it sits fully $200 above the “ideal” price where
long-term bulls might have gotten long or augmented an existing stake. The
target was disseminated a while back to subscribers, but if you don’t
subscribe and would like to know exactly where the potential danger-spot
lies, click here for a
free trial subscription to Rick’s Picks. It will give you
access not only to all of our forecasts and recommendations, but to a 24/7
chat room that draws veteran traders from all over the world. You’ll
also be able to participate in the occasional virtual trading sessions that
we offer online, wherein, using the Hidden Pivot Method and
“camouflage” trading technique, we look for real trades in real
time. Incidentally, we’ve also identified a rally target in Silver with
the potential to slow down the metal’s rampage, if not reverse it. We
never chisel these targets in stone, however, and if they are exceeded, we
infer not that the target itself was “wrong,” but that the
underlying trend is so powerful that it is likely to continue at least to the
next, major Hidden Pivot target.
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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