In off-hours trading early Tuesday evening, December Gold was fixing to accomplish what it had been unable to do the entire day — i.e., push above Monday’s 1168.60 peak. This would put the futures on track to achieve a rally target in the mid-1180s first flagged here a month ago. The exact number, which has migrated slightly over time, is 1187.70. Night owls may have an excellent opportunity to get long with relatively little risk, since the futures as of around 6:48 p.m. had yet to poke impulsively above Monday’s 1168.60 peak. A pullback from just above it could set up the best ‘camouflage’ entry opportunity we’ve seen in this vehicle in days. (See chart for a hypothetical picture of this.) Another would have come at yesterday’s lows, which the tout sent out Monday night had predicted within less than a point. Since no one in the chat room mentioned having caught the $16 rally from the low, I did not establish a tracking position. _______ UPDATE (9:44 a.m. ET): Entry for night owls using the tactic I’d illustrated came at 1167.20 around 9:50 p.m. (5-minute chart, A= 1164.90 at 3:20 p.m. on Tuesday). The stock hit 1176.90 seven hours later, for a gain of as much as $1200 per contract, but in practice you’d have been out of at least half of the position at 1170.10, the ‘D’ target of the small entry pattern. Results thereafter could have varied greatly, since, in the dead of night, the futures swooned violently to 1162.50 before trampolining to a so-far high this morning of 1178.70. The 1187.70 target remains viable.
