Tuesday, January 6, 2015

We'll take our rallies one small leg at a time, since Gold has displayed a nasty propensity to disappoint whenever we've turned too bullish too quickly. The current rally, now in its third day, has stalled ay the 1208.20 mipdpoint pivot of the pattern shown. If buyers can push past it by just $1 or so, the futures would become an odds-on bet to reach 1214.80.  As always, it would be a bullish sign going forward if the target is exceeded by a point or two rather than merely touched.

The yellow flag that I hung out here yesterday was just ahead of yesterday's nasty selloff.  The 2105.00 rally target (see inset) remains viable nonetheless, and we should plan on shorting there aggressively if we get the chance. Late Monday night, there  didn't appear to be any compelling bottom-fishing opportunities, since the futures were dawdling at a 2011.75 correction target that should have produced more of a bounce than it has so far.  The coordinates yielding this target, on the 60-minute chart, are a=2082.75 on 12/11, and b= 20378.75 on 1/2.

Apple's dip yesterday beneath the point  'C' low of the large rally pattern shown has negated a 130.83 target while opening the door for possible bottom-fishing at 101.78 (see inset). Specifically, I'll recommend buying four Jan 30 110 calls with the stock trading within 0.06 of the target. We'll try to spread them off against short 112 or 113 calls if the opportunity arises, but otherwise, tie the 110s to a stop-loss of 0.15.