The violent, gratuitous swoons of the last two days have temporarily dulled my enthusiasm for offering trade set-ups overnight, since it’s become all too obvious lately that it’s possible to get clobbered in this vehicle even if one gets the trend and target exactly right. Subscribers who have reported positions in the chat room this week appear to have done much better in practice, in part because recent predictions for gold featured a near-perfect low and two ‘camouflage’ entries that worked as advertised. But the latter required close attention, since the futures did a kamikaze dive at a time when many traders would have been patting themselves on the back and counting unhatched chickens.
Looking just ahead, the pattern shown points as high as 1203.10 over the very near term. Although this implies potential ‘mechanical’ buying opportunities on pullbacks to x (which in fact has already occurred), p or p2, I’ll leave it to subscribers to determine whether the necessary conditions for getting long still obtain as the night wears on. This would imply, for starters, that the 1173.90 low holds.