Bulls have had two days to ignite a booster-stage rally following last week’s encouraging thrust, but have so far failed to deliver. Short-term doubts would be dispelled by a push on Thursday exceeding 1232.65, the midpoint Hidden Pivot shown. However, if no such rally is forthcoming, regaining bullish momentum next week will likely require a scary headline or a downturn in European and Asian markets Sunday night. Despite my reservations, I would suggest to those familiar with the technique a single-contract mechanical’ buy if the futures exceed the green line overnight by at least five points for a few bars, then pull back to it. Your stop-loss would be at 1191.40._______ UPDATE (February 19, 12:51 a.m. EST): The buy at the green line suggested above could have produced a one-day profit of as much as $2800 per contract, since the futures vaulted to a 1240.60 peak intraday. Although numerous subscribers reported having gotten long, I haven’t established a tracking position because the trade could not have been executed using the ‘mechanical’ entry advised. A ‘camouflage’ entry would have worked, however, and I provided the relevant coordinates in the chat room. For the record, on the 3-minute chart, a perfect, stress-free opportunity would have come at 10:33 a.m. EST, using an x=1212.20 trigger derived from these coordinates: A= 1210.90 (10:15 a.m.); B=1213.10. Pivoteers will recognize the felicitous perfection of this pattern. Looking just ahead, Thursday’s upward penetration of the pattern’s 1232.70 midpoint pivot implies more progress over the near term to p2=1253.23, or to D=1273.80 if any higher. A pullback to 1212.10 could be bought ‘mechanically,’ stop 1191.40, for a shot at D. As before, you can try to cut the initial risk substantially by substituting a ‘camouflage’ entry for a mechanical one. The trade-off is that this is likely to take more work, but with the added benefit that you will have a chance of getting aboard for the next upthrust even if the futures don’t pull all the way back to the green line (i.e., 1212.08). _______ UPDATE (February 21, 10:31 p.m.): Although the futures breached p=1232.65 decisively to the upside on Thursday, the subsequent retracement has been too precipitous to set up an appealing ‘mechanical’ entry. Night owls can try it at the green line (1212.08) nonetheless, but the implied 1191.50 stop-loss is probably too much to risk, considering gold is already bucking buoyant Asian markets. Under the circumstances, a camouflage entry down near 1212.08 may be the ticket for traders eager to play. _______ UPDATE (February 22, 11:42 p.m.): A buy near 1212 could have produced a profit of as much as $1000 per contract, since the futures subsequently rallied $10 to the red line. I have not established a tracking position, however, because there were no reports in the chat room of anyone having done so.
