GCQ13 – August Gold (Last:1242.60)

Shortly after midnight, the futures have rebounded to within a hair of the 1246.40 pivot where I’d said they’d become an enticing short. However, on the 240-minute chart (see inset), they’ve also generated a bullish impulse leg that dictates trading from the long side for the time being. (This is why I had originally suggested that shorts be attempted only via camouflage.)  Accordingly, camo traders should watch for a long-entry trigger based on a pattern similar to the one I’ve sketched hypothetically.  Because buying at X would imply entry risk of at least $1500 per contract, it will be necessary to initiate the trade, camo-style, using a signal from the lesser charts to pare theoretical risk down to more like $40 per contract.  My guess is that you will be able to find such an opportunity only on charts of 3-minute degree or less. If I’m in the chat room when this occurs, I will signal it.  If it happens overnight, however, night owls will be on their own.