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Rick's Picks Oil Holds Sway Over Investors Rick Ackerman Aug 17, 2004 Excerpt from the current Rick's Picks (website). You can subscribe here. As I noted in an intraday message, yesterday's rally looked like a feeble, opportunistic squeeze -- one rooted in investors' propensity over a weekend to temporarily put aside whatever thoughts had troubled them the previous week. Of course, all short squeezes need some shred of good news to achieve lift-off, and this one, quite obviously, leveraged the temporary lull in crude oil's rampage to do so. Although my expectations were for lower stock prices on Monday, it was possible around mid-day to project a DJIA rally target at 9973.63, a hidden pivot. The blue chip average failed by about six points to get there, though - a subtle sign of weakness that should make us skeptical of any rally that unfolds today. It may be a moot point if oil prices move higher, since stocks are almost certain to move in the opposite direction. (See chart below which illustrates this, from Bob Bronson of Bronson Capital Markets Research.) There were reports at debka.com of pipeline sabotage by radical Shiites in southern Iraq, but as of early Monday evening the reports had not been confirmed by my other news sources. Crude oil futures were relatively calm in after-hours trading as well, so perhaps the Shiite attack didn't do much damage. Terror aside, September crude was closing on a hidden-pivot support at 45.78 that could end Monday's correction from recent highs at 46.80. Bottom line, use tight stops if you trade the rally from the long side. Rick Ackerman *** 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 ©2004, Rick Ackerman. All Rights Reserved. You can subscribe here. _______________ 321gold Inc