The 636.00 correction target for June Gold touted here over the weekend came within less than a dollar of catching the exact low of Monday’s $40 swing. Even so, I have my doubts that the selling is over. Notice in the chart below that the entire day’s more or less steady recovery did not create an impulse leg even on the 5-minute chart. That would have required at an absolute minimum a rally above the two labeled peaks; in the event, only one of them was breached. (Note: The prognosis could change overnight, so keep an eye on peak #2 during after-hours trading if you want to stay closely in tune.) Granted, a $20 rally off the lows is nothing to sneeze at. But in the context of the larger decline that has occurred over the last two weeks, it must be adjudged a disappointing showing, at least so far.

(Click on either chart to enlarge)

As much could be said of the broad averages, which recouped mildly daunting losses early in the session to finish somewhat down on the day. The Dow Industrials were off a little more than a hundred points in the early going but could only fight their way back to minus 18 points by the final bell. This is mildly disconcerting, since it occurred on a Monday, a day when Joe Sixpack, widows, orphans and pensioners typically trample each other in their eagerness to buy whatever stocks Wall Street hucksters have been peddling over the weekend.

The hourly chart below, of the DJIA, shows exactly what the blue chip average would have to do today to turn us bullish. Both peaks would need to be exceeded by a single, uncorrected  60-minute bar to get the Indoos back on a bullish track. Anything less than that, though, and we should infer they are about to rupture the support of some crucial lows made in mid-April near 11039. Thereafter, a fall to at least 10794, a hidden-pivot support, would be all but ordained.

To get us on board if stocks start to unravel, I outlined in the Intraday Notes section of yesterday’s newsletter a low-risk strategy in eBay that we can use to leverage the downside. Although I like eBay as a company, signs could not be clearer that its shares  eventually will trade at least 30% below current levels. Subscribers should also keep their bulletin launchers open, since there’s always a chance that a great opportunity will crop up.

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Australian Seminar?

Quite a few of you have indicated you are likely to attend the hidden-pivot seminar in New York this October. I’ve also heard from about a half-dozen Australian readers and subscribers who said they’re interested but that it would be too far to travel. However, I’m willing to come to Sydney or Melbourne if I can fill a class, so let me please hear from you if that would work.

The New York session will be a no-frills version of the course that I gave in Denver, offered at a significant saving over the original price. After that there will probably be just one more session offered – in San Francisco, late in 2006 or early 2007 -- but that would be the last for a long while.

The course includes post-grad mentoring via a chat group that some of my former students have set up. If you’ve been impressed with the accuracy of my forecasts, this is an opportunity you should not pass up. Please let me know via e-mail if you are serious about coming.