Gold has been moving to our Hidden Pivot targets almost to-the-tick. Yesterday’s forecast, for one, had called for a rally top at 617.50, and that is precisely where the Comex December contract paused after completing the $17 thrust we’d projected. Where to next? I broached two bullish targets in the chat room whose provenance is shown on a chart reproduced in today’s Touts. One of those targets is not far above, and its ability to resist the trend, even if only fleetingly, can tell use whether the futures will soon be headed up to the next. If so, gold bulls have something to cheer about, since the second target is fairly ambitious, implying as it does the biggest bull leg I’ve forecast in quite a while.

(Click on chart to enlarge) 

Meanwhile, using call options that were acquired at excellent prices, we hold long positions in some gold stocks. In Newmont, we legged into a vertical call spread that has left us effectively with no risk. In fact, we put on the spread for a credit, so that the worst we can do if the stock continues higher is make $30 per spread (less commissions); and the best, make $250/spread. The second position is in Goldcorp, where we established a tracking position based on the following note from a subscriber: “Picked up 18 Goldcorp November 25 calls on Tuesday morning at around 1.25. Actually bought in before the first hour was completely up but saw that the stock was holding its own. Will you be creating a tracking position on it? Already sold eight at 1.70 (as you have told us before, taking some partial profits early allows one to be less emotional with the leftover.) Whether you decide to track it and offer advice going forward or not, thank you.”

Exiting Near the Top

The subscriber had acted on the following, posted by me around 2 a.m. on Tuesday with the stock having settled the previous day at 25.38:  “Goldcorp blew past a Hidden Pivot resistance at 25.42 yesterday (A=21.08 on 10/12, 30m chart) and now looks bound for another at 26.62 (A=22.64 on 10/24, 30m chart). If the stock is trading above 25.39 an hour into today's session, look for the thrust toward our target by day's end.”  Goldcorp subsequently opened at 26.68 before falling to as low as 25.61, but the brief rally allowed us to take profits on half of our call position, and to lower the cost basis on what remains to relative pocket change.

The chat room continues to be a great place to hang out if you’re interested in gold stocks and futures, since more and more Hidden Pivot seminar grads are dropping by each day. Some of the “old-timers,” students who took the class back in February and March, are becoming more than merely proficient in forecasting targets. Discussion in the room is increasingly trade-oriented, especially in gold stocks, but  there is also a good bit of analysis for other trading and investment vehicles. Come on by today if you’ve got a few minutes to spare.

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Last Call, San Francisco!

There are still some seats left at the two Hidden Pivot seminar scheduled -- in San Francisco on November 11-12; and in Sydney, Australia on  December 2-3.  You can  request a registration form and further details by clicking here.  Please specify which session you are interested in.