GCZ14 – December Gold (Last:1193.00)

The futures look to be consolidating for a push to as high as 1228.40 over the near term. My hunch, however, is that the implied thrust will start from a lower low than the 1180.80 point ‘C’ shown.  This means night owls who want to get aboard should wait for a marginal breach of 1180.80, then be ready to buy-stop themselves into the trade on an entry signal that would be tripped exactly 12 point above the new low. This is intended as a ‘timed buy-stop’ entry, since there can be no justification for abiding theroretical entry risk of more than about 0.50-0.70, no matter what your intentions. Using this tactic, you should stay with the trade only if it goes into the black immediately after you enter, and take a partial profit early in the trade. _______ UPDATE 10:40 a.m.): Gold took off last night without the fake-out pullback I’d expected.  In retrospect, the best way for subscribers to have caught the trade would have entailed using the ‘timed buy-stop’ tactic described, but at a slightly higher price.