Bulls have short-covering bears and some muddled words from Draghi to thank for Thursday’s sensational rally, which trampolined $50 from a booby-trapped low as the regular session began. My immediate target is 1293.10, and although the futures dropped too sharply from the 1287.80 intraday high for us to put in a ‘mechanical’ bid at p2=1279.20, there may be another such opportunity from p=1265.30 that would take a stop-loss at 1256.00. As always, you can reduce the entry risk significantly by substituting a ‘camouflage’ entry for the ‘mechanical’ one. This would also give traders a better chance to get long if the pullback overnight does not quite come down to the red line (i.e., 1265.30). ______ UPDATE (March 11, 11:04 a.m. ET): The bad guys are winning again today, with stocks and junk bonds trading significantly higher, and gold and T-bonds slumping. April Gold is a ‘mechanical’ buy nonetheless at 1251.40, stop 1237.40.
