Friday, February 3, 2012

A 35.535 Hidden Pivot target drum-rolled here earlier remains my minimum rally target for the moment, but the futures will first need to build a launching pad at 34.235, the midpoint, to exit the atmosphere.  We cautiously exited a winning day trade yesterday for a $3100 paper gain, necessitating re-entry if we are going to capture the last part of the move. Judging from the diabolical price action since yesterday morning, finding good camouflage to get long again is going to be tough. My suggestion is to use the 5-minute chart (see inset), which contains enough subtle hooks to get us aboard. Since risk, in theory, will be penny ante, you can ignore the fact that none of  the peaks along this evening's retracement is a true 'external'.

I've taken pains to detail a possible opportunity to use camouflage to get long today in April Gold. If the pattern plays out as sketched, I would encourage any camouflageurs in the chat room to share the entry tactic, since it would be pretty  straightforward.

The camo pattern I mentioned here yesterday has continued to evolve, with a so-far high at 1764.00 that lies nicely between two external peaks located, respectively, at 1763.00 (12/8) and 1769.70 (12/2).  Now, all that's needed to make the pattern bullishly tradable is a dip to a single-bar low, then a 5.20-point (25% of A-B) rally to engender an X trigger for a buy-stop entry. The implied $500+ stop-loss per contract would be much too wide for us, so you'll need to find your X on a chart of lesser degree -- perhaps even the one-minute bars. Targets at 1171.50 and 1799.50 remain viable, with the lower number a logical minimum upside objective for the very near term.

Silver Wheaton's delightful rampage is in no danger of being suppressed, and so we should look for this burst to continue to at least 39.06, the Hidden Pivot target of the pattern shown.  The p midpoint at 36.76 has already been bettered by 50 cents, adding to the woes of those with the bad judgment to be short right now. The camo pattern we might have used to get long at these levels is a humdinger, with three  single-bar coordinates (labeled in green) so obvious that they are visible even on the 180-minute bars without the use of a magnifying glass.  For your information, the coordinates are: A=34.86 (11 a.m. EST on January 30), B=36.80 on Jan 31, and C=35.04 on Jan 31, for E=35.53.

There was no E-Mini tout yesterday -- not that any of you should have missed it on a day when the biggest price swing was a paltry 9 points. This frustrating price action should be presumed a prelude to a shot at the 1353.00 target shown.  This is compelling midpoint action, and although there are no guarantees that the futures will surge past the 'p' pivot, we'll know exactly where they're going if and when this occurs.  Incidentally, the chart was marked up during a private session held yesterday for one of the three Hidden Pivot scholarship winners. We were looking for a trade at the time but found the pickings slim.  Each remedial sessions will be recorded, and webmaster Mike should have the first three ready for your perusal by today.  All who are signed up for the regular, weekly tutorial sessions are eligible to view them.  Click here for information on how you can join us.

We’ve been known to keep odd hours, which, depending on the circumstances, can be good or bad when attempting to earn one’s daily bread trading. Sometimes it seems as though the best opportunities -- meaning the ones that produce quick and easy gains with relatively little stress – occur in the dead of night. At other times, especially in the first hour or so after the opening bell, the low-hanging fruit positively beckons those who are able to stay cool while most other traders, too scared to act, are waiting for the dust to settle. We love it when the action is heated – wild, even -- since this tends to drive most other traders to the sidelines. Let them sit on their thumbs, as far as we’re concerned – it just means easier pickings for us.  When things get moving, the Hidden Pivot Method that we use to trade and forecast is especially good at identifying the “filet” of uptrends and downtrends. As such, the terms bullish or bearish apply only to the extent that the “impulse legs” that drive these trends are headed higher, or lower, in a given time frame. A Silver trade that we put out to subscribers Wednesday night implictly required them to pay close attention to impulse legs on the very lesser charts. Here’s what we advised (and keep in mind that although the jargon is technical, it is geared to the many hundreds of subscribers who have taken the Hidden Pivot Course):  “March Silver appears to be building thrust for a shot at 35.535, the ‘D’ target of the pattern shown in the thumbnail mini-inset.  The 34.235 midpoint resistance that would need to be surpassed first is above Tuesday’s spike high, so we’ll  need to make our move below that level, camouflage-style, if