The futures remain on track for a rally to 1681.10 (or perhaps 1681.50), but the pattern that presumably will get them there is sufficiently clear and compelling that I’ll suggest shorting near the target via a ‘camo’ entry. Keep in mind that the position is to be implemented with four contracts and that the theoretical risk (i.e., the distance between the signaled X entry point and the point ‘C’ low of the pattern) be no greater than $70 per contract. I hesitate to suggest substituting mini-contracts to achieve this, since the dangerous illiquidity of mini bullion futures more than offsets the peace of mind we might hope to get trading a downsized vehicle.
