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Is the dollar finally starting to crack? It surely looks that way, although we’ll need to see another day or two’s worth of action before we can be more certain. The carnage so far has crushed two key supports on the Dollar Index’s daily chart, and it won’t take much more selling to obliterate a third, greatly compounding the technical damage thus far. That would occur if the steep plunge begun on December 4 surpasses the 80.75 low labeled in the chart below. If this were to occur without an intervening correction lasting more than a day, it would make the selloff the most powerful we’ve seen since the dollar embarked on a huge short-squeeze rally in July.
We’ve written extensively about the seeming anomaly of an intrinsically worthless dollar moving relentlessly higher, as it had been doing until late October. This was not a flight to safety, as mainstream reportage had it, but a massive short-squeeze powered by borrowers of dollars who have been finding it increasingly difficult to keep rolling their loans. Although we might have expected the dollar to climax more spectacularly, putting a decisive end to the dollar’s reserve currency status, we are open to the possibility that its last gasp is taking the form of a garden variety head-and-shoulders formation (also shown in the chart).
Whatever the case, buyers of gold and silver haven’t been timid about discounting the dollar’s fall. Yesterday, Comex contracts for both metals exceeded minor Hidden Pivot rally targets, raising the odds that they will soon achieve even more-ambitious targets that come from the larger charts and which were spelled out Sunday night in the touts section of Rick’s Picks. The higher targets are well shy of new record highs, but if they are achieved it would imply that there is sufficient buying power to refresh the bullish trend for yet another run (in Gold) to $1,000. (If you’d like to have Rick’s commentary delivered free to your e-mail box each day, click here.)
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With the markets acting more volatile than ever, Rick’s Picks has adapted the Hidden Pivot Method to trade E-Mini futures contacts while controlling very tightly for risk. Using tick- and three-minute bar charts, we look for subtle hints of strength, and seek to initiate trades, just ahead of the crowd. Join us next Thursday morning during market hours for a live demonstration on TradeStation charts. If you're a day- or swing trader, expect to come out of this session with immediately actionable ideas. Click here to register for the session.
A Sinatra Lover’s Sinatra
Our childhood chum Rick Apt, proprietor of (www.blue-eyes.com), has been one of Frank Sinatra’s biggest fans for most of the 55 years we’ve known him. We asked Rick which Sinatra albums he would take with him if he were exiled to a remote island. Here’s his short list:
- Only the Lonely
- September of My Years
- In the Wee Small Hours
- Songs for Swingin’ Lovers
- A Swingin’ Affair
- where are you
- Sinatra/Basie
- Francis Albert Sinatra & Antonio Carlos Jobim
- Ol’ Blue Eyes Is Back
- Come Dance With Me
Incidentally, the classic shot of Sinatra above graces the cover of a snazzy 2009 Sinatra calendar available at Rick’s site. There are many more items for sale at great prices, including an “All of Me” Christmas ornament, an “I Did It My Way” t-shirt, a rare Sinatra postal lapel pin, Frank’s favorite cologne (Aqua Lavanda) and, for high rollers and collectors, a Cal Neva Lodge cigarette lighter. (http://www.blue-eyes.com/) - the best site on the Web for Sinatra collectibles.
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. 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 © 2008, Rick Ackerman. All Rights Reserved. www.rickackerman.com
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