Gold’s bounce Thursday from middling overnight lows fell just shy of the 1326.30 midpoint Hidden Pivot of the pattern shown. The pattern and its HP levels remain viable nonetheless and possess the kind of clarity and vitality that will warrant exploitation. Night owls may get the first crack at it, since the futures were stealing up on an ‘external’ peak at 1326.00 (see inset) as we went to press. This could provide an optimal ‘camouflage’ set-up, so consider this a heads-up in real time. If any fills are reported in the chat room I’ll establish tracking guidance Friday morning._______ UPDATE (Sep 30, 12:59 a.m. ET): The camo trade set-up sketched above worked perfectly on the 5-minute chart, with two single-bar coordinates, A and C, triggering entry at 1326.50. Half of a four-contract position would have been cashed out at p=1326.90, and a third contract at d=1327.80. The remaining contract would have an effective cost basis at that point of 1324.40. Assuming the nutty, criminally inspired takedown to 1322.00 was a real print, no reasonable stop-loss would have survived. FYI, the high of the move occurred just three ticks above the 1327.80 ‘secondary’ Hidden Pivot of the larger pattern projecting to 1329.80. Strictly speaking, the futures became a mechanical buy at 1324.50 on their way to the takedown bottom at 1322.00. That trade would have been stopped out instantly, judging from the look of the felonious bar. Discard it as an outlier and the futures still look like they’ll hit 1329.80. even so, the trade is dicey — make that illegitimate — because we cannot simply discard the non-conforming bar. All of this is vividly shown in the updated chart (see inset). The lesson here is that, in the trading world, you can get it just about perfect and still get sodomized. The good news is that we don’t see aberration this extreme very often.
