Tuesday, January 8, 2013

Subscribers had an opportunity to do an actual "camouflage" trade in February Gold during yesterday's impromptu session. Check out the chart accompanying today's gold tout if you want to see what we did.  As of Monday night, the position was lifting above the original target, implying that a bullish pattern of larger magnitude was in play.  Click here to sample Rick's Picks for free, including access to a 24/7 chat room and notification of impromptu online teaching sessions such as the one noted above.

I opened a virtual classroom yesterday when February Gold developed a tradable pattern in the early afternoon.  Subsequent price action met our expectations almost exactly, but that didn't mean easy money for those who actually took the trade. Entry was triggered at 1647.00 shortly after noon Mountain Time (see inset), and I encouraged those in the room to initiate the trade, even if it rated only a 'six' on a one-to-ten scale of desirability. At the time, I warned that it might take patience for the futures to hit the 1648.10 midpoint pivot where we could take profits on half of the position. In fact, it wasn't until 80 minutes later that this occurred.  From there, it was another three-and-a-half hours before the rally finally hit the target 1650.40. Now, as I write these words, bulls are lifting February Gold above the target, suggesting that the target of a larger pattern is in play.  In fact, there is one at 1655.20 that we can use now that the futures have pushed above its midpoint sibling at 1652.90 (3-min, A=1648.50 at 7:06 p.m. EST; B=1653.10 at 7:18 p.m., and C=1650.60).  You can learn to do this stuff yourself, and it’s easier than you might think. Click here for information about the upcoming Hidden Pivot Webinar.

We hold a bull spread that is guaranteed to make money  -- two dozen March 30-33 verticals legged on in November for a 12.5-cent credit.  We stand to make as much as $7500 if Facebook is trading above $33 come March 15, but no loss is possible since we own the position for a net credit of $300. FB has rallied sharply since we completed the spread, hitting a recovery high of $29.79 yesterday while the broad averages were falling.  Although I doubt it can keep up the pace, yesterday's thrust refreshed the bullish impulsiveness of the daily chart by exceeding July's highs near 29.50. And while this is no guarantee that our spread position will achieve the maximum theoretical gain of $7500, it is sufficient for now to make us feel pretty good about it.