Overexuberant bulls got badly trapped on the spike to 1287.80 Thursday evening, setting the stage for Friday’s nasty $37 plunge. Although the pullback to the green line has ostensibly made the April contract a ‘mechanical’ buy at 1251.30, stop 1237.40, for a shot at a still-viable D target at 1292.90, we’ll put caution ahead of opportunity for the time being. I may revise this, depending on how the futures open Sunday night. But if the broad stock averages continue higher, as I expect, bullion bears — joined most recently by the commercials — are apt to use the occasion to inflict more pain on bulls. The bigger picture, for your information, still looks very promising, although it will still take a push above January 2015’s ‘Matterhorn’ peak at 1308.00 to drive a stake through the heart of the bad guys.
