Elsewhere in today’s touts I’ve outlined a strategy for hedging a short position in December Gold when it reaches a longstanding target at 1044.50. However, a separate trade in this vehicle appears warranted regardless of what the futures contract does. Specifically, I’ll recommend buying 200 shares of GOLD with a 101.61 bid, stop 101.38, day order. This is an attempt to leverage an expected bounce from the 101.56 target shown, and it is independent of my strategy for the December futures. If you can improve on this trade using real-time Hidden Pivot information as it becomes available Wednesday morning, I would encourage you to do so. And if you’d prefer to interpolate using call options, I’d suggest a cautious bid for Nov 27 calls at the 102 strike. Be prepared to exit half of any position entered thereof if the price of the calls doubles. _______ UPDATE (5:23 p.m. ET): I’ve moved the target lower, to 101.35 (see new chart), so adjust your option bid accordingly. If you plan on buying shares of the ETF, use a 101.37 bid with a stop-loss at 101.15. The original target at 101.61 comes from a very long-term pattern on the weekly chart, but we may be able to get aboard closer to the actual bottom by using a chart of much smaller degree._______ UPDATE (November 20, 2:26 a.m.): GLD turned from 101.98, stranding our bid. For now, do nothing, since I don’t want to chase this vehicle higher.
