We left some money on the table yesterday in the shares of Goldman Sachs (GS) but still managed to extract a theoretical gain of $500 from a small overnight trade in the stock. I’d recommended buying Goldman shares on Tuesday at 224.27, a Hidden Pivot support that missed catching the exact low of the day by a single penny. The next day began delightfully, with the stock opening on a bullish gap that allowed us to easily sell half the position at 225.90 as recommended. GS shares subsequently climbed above $227, but I was briefly too busy to notice, and we wound up exiting the remaining half of our position at 225.20, well off the day’s highs.

We weren’t so fortunate in the E-Mini S&P, where we lost about $60 after getting aboard comfortably via a buy-stop entry at 1510.00.  The futures subsequently rose to 1513.75, but that wasn’t quite enough of a rally to trigger a trailing stop to protect our profits. We remained in the trade and stayed marginally profitable for another hour or so, but when the futures eased moderately we stopped ourselves out around 1508.75. (I’d suggested raising the stop to break-even levels in the chat room but am assuming that at least some subscribers stuck around for the ride.)  Loss aside, we should take note of the fact that the S&P 500 Index on which the E-Mini is based seriously lagged the Dow Industrials yesterday. The rally is getting narrower and narrower, for certain, and anyone who fails to notice this deserves to go down with the ship.

Gold Warning

We did nothing in Gold as it fell sharply, although I’d done my best in Wednesday’s Touts to warn bulls away from the stuff. Here is what I wrote just prior to yesterday’s $15 smash:

“Chat-room gossip has me turning bullish on Gold if it should pop above such-and-such a price, but let me make this clear: I am not bullish on Gold right now, not by a longshot, and I expect the June futures to fall to at least $659 over the near term. Moreover, if that Hidden Pivot gives way, the weakness could continue all the way down to [see Tout]. You can bottom-fish till your heart's content in the miners -- including in Newmont, which is now testing $40, as I'd predicted -- but I wouldn't risk more than pocket change each time you attempt this stunt.”

I have my doubts that Wednesday’s plunge will have cleared the air, and so the 659.10  target broached here earlier still stands as my minimum downside projection. If it’s exceeded, though, the other targets that I gave at that time will apply.