We’re taking bullion’s possibly gratuitous ups and downs one day at a time, with results that may at times seem more gratifying to traders than to long-term investors. Fortunately, some of the gold bulls who have been active in the Rick’s Picks chat room appear content to grab what they can, even if it means being short the stuff now and then, as at least one room denizen chose to be yesterday. 

As it happened, our efforts to monitor gold’s vital signs very closely in real time yielded a short-able target for the Comex December that missed its 612.40 intraday peak by just two ticks. The trader announced to the room that he would carry the short position overnight, a decision that was not looking too shabby in the early evening. As of 9 p.m., Gold had in fact come off its highs by nearly $8, giving the short position a theoretical profit of about  $800 per contract.

But with no clear downside target in sight, nor even a Hidden Pivot above to contain a possible short-squeeze, his was a risky play at best – one that would require close attention during hours that most of us would prefer to spend relaxing. 

(Click on chart to enlarge) 

A day earlier, we had called attention to Gold’s bullish tone change based on a run-up above 607.10 in the Comex December. That signal remains valid, with no Hidden-Pivot impediments immediately above. However, there is one conventional resistance spot above yesterday’s top where we’ll be looking for buyers to prove they are serious: 621.10 (see chart above). That would mark a 0.618 retracement of September’s steep slide, and any progress above it would therefore be a welcome sign.

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