Wednesday, March 20, 2013

HUI – Gold Bugs Index (Last:354.24)

– Posted in: Current Touts Rick's Picks

I've reproduced a chart that shows why this vehicle will need to rally more sharply than Gold futures in order to turn the daily chart bullish.  The key external peak that bulls need to surpass lies at 372.02, and the move would of course need to be unpaused once it has exceeded internal peak #1 at 359.77.  This seems a bit of a stretch, but as long as physical looks poised for a breakout, we should be prepared to give mining shares the benefit of the doubt.

GCJ13 – April Gold (Last:1607.80)

– Posted in: Current Touts Rick's Picks

This could be an important day for gold, since only a modest rally is needed to generate the first bullish impulse leg we've seen on the daily chart in two months. Specifically, the futures would need to surpass the 1619.70 'external' peak that I've labeled.  If and when that happens, you should be prepared to zoom down to the 1- or 3-minute chart to get long on the first x signal that occurs.  The breakout could turn this vehicle a little wild for a while, but the purpose of the camo entry would be to take a small stake, then to lower its cost basis by taking a small profit on three-fourths of the initial position. Please let me know in the chat room if you fill this order, since I will establish tracking guidance if at least two traders indicate that they have gotten aboard. ________ UPDATE (March 21, 4:20 a.m.):  Buyers flunked the test, but perhaps they'll do better today after a good night's rest.

ESM13 – June E-Mini S&P (Last:1541.50)

– Posted in: Current Touts Free Rick's Picks

The hysterics of the last few days have alleviated the boredom of a rally that had been largely untradable for weeks, but we should be careful what we wish for, since we've now got a real handful. Much as the permabear in me would like to say it's a topping pattern, notice how the minor abc corrections are not reaching their 'd' targets -- are in fact reversing from near their 'p' midpoints. The implied bullishness of such price action would be further affirmed by an impulsive upthrust, but that too has been missing, at least so far.  It would be remedied by a print exceeding the 1547.50 'external' peak that I've labeled. If you're looking to get long via camouflage, I'd suggest jumping on the trade if a pattern develops that yields a b-c pullback from just above 1547.50. Click here to learn more about my proprietary 'camouflage' trading method.