We've got 20 points of upside before June Gold reaches the 1451.40 rally target given here Tuesday night. Traders should take a close look at the chart accompanying today's tout, since it identifies a subtle peak that could prove ideal for 'camouflage" traders wanting to jump aboard with little stress or risk. _______ UPDATE (Midnight EDT): The trade has worked out as precisely as we could have imagined. Check the tout update for guidance in managing the single contract that would remain from an initial purchase of four. Its effective cost basis is 1427.30, and we are still shooting for a minimum 1451.40. I've advised an impulse-leg stop based on the 4-minute chart for now, but above 1451.40 we'll be swinging for the fences.
Thursday, April 25, 2013
GCM13 – June Gold (Last:1451.50)
– Posted in: Current Touts Rick's PicksBased on the 1451.40 target given here yesterday, we've still got a 20-point bull trade to look forward to. The ride higher has been anything but comfortable, but if a chop-and-slop ascent is all we've got to work with, we'll deal with it as best we can. In practice, that means taking note of the look-to-the-left peak I've highlighted at 1434.50. It is likely to go unnoticed by other traders, but if a rally exceeds it by a tick or two and pulls back in shallow 'b-c' fashion, it will be ideal for generating an entry signal that gets us aboard with just a few ticks of theoretical risk. _______ UPDATE (11:43 p.m. EDT): The pullback from just above 1434.50 provided as felicitous an entry opportunity as camouflageurs are going to see in this vehicle. I've refreshed the chart to show the coordinates -- each perfect in a way that, for proprietary reasons, I won't go into: A=1426.30; B=1436.50; and C=1432.20. For tracking guidance, I'll assume we are long one contract with an effective cost basis of 1427.30. For now, and until the futures reach our 1451.40 target, use an impulse-leg stop drawn from the 4-minute chart. At the moment --11:58 p.m. EDT -- it would require an uncorrected downdraft touching 1438.70 to pop us out of the trade. Above 1451.40, we'll be swinging for the fences. _______ UPDATE (9:49 a.m. EDT): After hitting a high this morning of 1454.80, the futures have gotten slammed. Use a stop-loss at 1443.60 for the time being. If it's hit, the theoretical gain per contract would be $1630. _______ UPDATE (10:15 a.m. EDT): Switch to an impulse-leg stop on the 10-minute chart. At the moment, activating the stop would require an uncorrected fall to 1443.00. If you're managing a position, you should check
ESM13 – June E-Mini S&P (Last:1581.75)
– Posted in: Current Touts Free Rick's PicksYesterday's tiresome pump-priming produced a marginal new high that got the futures within four points of the 1583.00 target given here yesterday. The weak selling that ended the day left a 10-point rally to be traded -- presumably via camouflage, since the action has been so herky-jerky. Notice that after-hours selling has produced two 'external' peaks that can be leveraged for this purpose, and there could be more of them by the time you read this. If you miss this opportunity, I'd recommend taking the short from 1583.00, or perhaps from 1589.00, an alternative target derived from the lower point 'A' (see inset) at 1542.75. 'Camouflage' is the method of choice here, since both targets used the nadir of Tuesday's nutty swoon for a point 'C' low. _______ UPDATE (6:10 p.m. EDT): The intraday high occurred at 1588.25. Shortly thereafter, a chat-roomer with some impressive camo chops, Davis, reported getting short at 1585.75. He took one contract home with him and we wished him good luck. Want to join in the fun? Click here for a free trial subscription that includes daily touts and access to a 24/7 chat room that draws experienced traders from around the world.
