Occasionally there are trade set-ups so perfect that you feel like they can’t miss. That was the case in Silver futures yesterday, when the ABC-type correction (see inset) bounced from a ‘Hidden Pivot’ support as pretty as they come.  The trading ‘tout’ I sent out the night before anticipated the bounce very precisely — so precisely, in fact, that I’d suggested getting long with a 19.335 bid and a stop-loss just three ticks below it (equivalent to 1.5 cents). In the actual event, the futures fell to 19.325, two ticks beneath the bid, ensuring that anyone who followed my tout exactly would have gotten filled on the order. The May contract then trampolined 48 cents higher overnight. If you’d bought as advised and cashed out at the top, your gain would have been $2400 per contract.  The 19.320 stop-loss would have subjected you to initial theoretical risk of just $75. (I say ‘theoretical’ because one cannot always bail out of a position on the terms one desires.  That is one of the risks of the game.)

Commodity trading can be risky, of course, and there are no assurances that future trades offered here will work out as well as this one. Could you have done the trade yourself?  Here are my verbatim instructions:  “Yesterday’s dive to 19.220 found support just above January’s 19.030 low, but the subsequent bounce is as yet insufficient for us to conclude that the worst is behind.  The very lesser charts would turn short-term bullish today on a print at 19.675, but anything shy of that should be regarded as shorting opportunity.  All that aside, night owls could attempt bottom-fishing at p=19.335 with a stop-loss as tight as three ticks (see inset, a new chart).”

So confident was I in this trade that I also spotlighted in the Rick’s Picks Today’s Action box, as follows: “One might as well flip a coin to determine where stocks will head tomorrow, since they appear to be in the throes of delerium. Somewhat less difficult to predict is May Silver, however. If you trade this vehicle, especially at night, be sure to check out the update to my tout, since the chart includes a precise price where one might attempt bottom-fishing with the tightest of stops.  Don’t subscribe? Click here for a free peek — no credit card necessary.”

Would you like to receive alerts when similar opportunities occur in the future? If so, simply click on the link immediately above to gain free trial access to my touts and a 24/7 chat room that draws experienced traders from around the world. Want to learn more about the Hidden Pivot Method and ‘Camouflage’ Trading? Click here.