Subscribers were advised on Friday to cover a short position that would have produced a gain of as much as $12,000 per contract over the month it was held. The $18 selloff that ended the week fell a tad shy of our longstanding target at 1044.50. However, because I expect a strong bounce from the target or very near it, and because the intraday low coincided with the Hidden Pivot target of a lesser downtrend (see inset), it was time to cover the position rather than try to milk it for a few more drops.

As the new week begins, we’ll look to stake out a long position somewhere near these levels, but I didn’t want to attempt it by trading ahead of the weekend. (Note: The best way to stay apprised in real time is to tune to the chat room or sign up for intraday email alerts on your account page.) Earlier, I had provided explicit instructions for using GLD to leverage a possible bullish reversal. However, this vehicle looks more precarious than the futures, having breached a major Hidden Pivot target on Friday at 101.56. We’ll consider it nonetheless if it flashes opportunity.