Here are two numbers to jot down if you’re interested in gold and the U.S. dollar: 75.47 and 72.93. Those are our current downside targets for the NYBOT Dollar Index, and we are quite confident that both will be reached in the fullness of time. The first lies just 1% below yesterday’s settlement price of 76.28; the second, 4.3% below it. Like you, we’ve heard many compelling arguments from dollar bulls and bears. Some think it is about to turn very strong, while others see a collapse. Our gut feeling is that the bulls will be right, » Read the full article
This tout will officially correct a downside target by a small amount, to 75.47.As noted in today’s commentary, I expect DXY to fall to that number and then to rally for a spell before plunging anew to 72.93. If the higher target is reached around the same time December Gold is hitting 1074, consider that a warning to lighten up on precious metals.
Late Wednesday night, the futures were playing toe-sies with a Hidden Pivot rally target at 9794 (see chart). The actual high so far is 9793, and it could go either way. Notice that I have used, not the one-off ‘A’ here, but the obvious one. That’s because I needed to project the highest target possible from the existing pattern. If it is exceeded, we’ll have to move up to the daily chart to find a rally pattern yet to play out. The most obvious one, going back to the March low, yields a bear rally objective of 10431.
Yesterday’s bullish forecast and target worked well enough for at least one subscriber, Phil D., to make money while he slept: “Bought three minis below 1010 with a stop below your C-point before going to bed, got up this morning and saw we’d bounced just a hair over 1022, so I sold 2 at 1018+. Not a bad return on sleeping. Given the low risk, it seems I should have bought more. Keep looking for that camouflage!” And so we shall, since the immediate forecast still calls for a rally to at least 1074. As of 10:51 p.m., a camouflage “alert” was in effect, since the abc retracement highlighted in the chart failed to reach its ”d’ target (or even its midpoint pivot). When this occurs, the first impulse leg headed in the opposite direction is the one we should look for to help us enter almost risklessly with the trend. So far, however, none of the minor rallies this evening have exceeded the required two peaks.
Google is too hot right now for us to play catch-up, but because we have a score to settle, we’ll be looking for any opportunity we can find to plunder the unwary. The stock appears bound for 553.87, opening up the possibility of our buying cheap vertical spreads near the 550 strike. The December spreads sell for a little more than three bucks, but we’ll want to pay no more than $1.50 or so. That will require legging into the spread, buy side first. Stay tuned, since the trade must be attempted when the stock is falling toward a Hidden Pivot retracement target.
More downside over the near-term to at least 15.865 (see inset) looks very likely, so traders should position from the short side. The opportunity may be past by morning, but night owls can use an entry trigger on the lesser charts (i.e., 5-minute bar or less) to get aboard. I’ve highlighted the relevant ABC pattern, which appears at the rightmost edge of the chart. ______ UPDATE (9:23 a.m. EDT): Anyone who got short as advised made a pile of money overnight without much stress. The futures have plummeted and are currently down about 63 cents, having recorded a so-far low at 15.635 that exceeded our target by by 23 cents.
The failure of Tuesday’s rally to reach the modest, 1260.30 Hidden Pivot target we were using as a minimum upside objective is not exactly a sign of robust health. The target remains theoretically viable because the point ‘C’ low at 1232.00 with which it is associated is still intact. However, the hourly chart has swung bearishly impulsive as a result of the ratcheting, two-day sell-off from the recent high at 1255.60. Short-term downside potential is to the 1232.30 target shown. If this Hidden Pivot support is easily breached, however, it would suggest more sellers are waiting in the wings. Alternatively, the futures would need to surpass 1246.30 without having first touched the 1239.30 midpoint support (see inset) to turn the hourly chart short-term bullish. _______ UPDATE (October 27, 8:01 p.m. EDT): I expect the next leg down to reach the 1216.40 Hidden Pivot support shown. Alternatively, a print today at 1236.30 would give bulls a fighting chance. _______ UPDATE (October 29, 1:23 p.m.): 1202.10 is my new downside target — a Hidden Pivot support identified during this morning’s weekly tutorial session. _______ UPDATE: An 1125.00 target broached yesterday during my regular interview with Al Korelin should suffice to keep you out of trouble. I hadn’t imagined the futures would get halfway there overnight.
Apple’s gap yesterday through the 100.41 midpoint resistance (see inset) strongly implies that its D sibling at 105.64 will be reached. Although a pullback to the midpoint should be treated as a belated buying opportunity, I wouldn’t suggest chasing the stock higher. That said, the four labeled peaks are tailor-made for the Hidden Pivot trader who can employ the ‘camouflage’ technique for getting long. If you understand why, you should go for it! _______ UPDATE (8:13 p.m.): The broad averages pulled Apple back down to earth yesterday when the stock tried to go opposite weakness that surfaced around mid-session. This runs flatly counter to my speculative idea that AAPL might pull the broad averages higher. That’s still possible, since yesterday’s 104.11 peak fell 53 cents of a rally target that remains valid in theory. However, we’ll eschew speculation for now and simply watch to see whether the 102.44 Hidden Pivot support holds (see inset, a new chart). _______ UPDATE (October 23, 1:59 p.m.): Apple has rebounded sharply today, off a 102.90 correction low to a so-far high of 105.05 that’s 59 cents shy of our target. Most longs should have been exited by now. ______ UPDATE (October 27, 8:07 p.m.): Friday’s high at 105.49 came within 0.15 of the target flagged above. Bulls can continue to hold small long positions for a swing at the fences, but I’d suggest tying your shares to a stop-loss based on a downtrending impulse leg on the 15-minute chart. Currently, that would imply stopping yourself out if an uncorrected fall touches 104.52. _______ UPDATE (October 28, 8:44 p.m.): Still long? Be alert at 107.08, a Hidden Pivot target that looks all but certain to be reached but which could stop the rally cold. You should tighten your trailing stop there in any case. ______ UPDATE (October 29, 9:25 p.m.): The rally has shredded some challenging Hidden Pivots, but let’s see if it can bully its way past the 109.07 target shown. In any case, it is my minimum upside objective for the near term.
Yesterday’s high fell a nickel shy of an 11.93 target that leaps to the eye from the hourly chart. If UNG should exceed that number on a closing basis, however, expect buyers to take it higher, to at least 12.45.