I’ve included the yen in today’s list of touts because, for all intents and purposes, its chart is identical to gold’s. Furthermore, and for what it’s worth, the yen would become a ‘mechanical’ buy in theory if it returns to the green line on Friday as seems likely. That doesn’t mean the trade is a guaranteed winner. However, it would be most unusual for a bullish pattern with a such a strong impulse leg, and a high that nearly touched the ‘secondary pivot’ at 0.89901, to abort without having reached its D target at 0.90995. My read on the gold chart is somewhat more cautious, however, since a trend failure via a fall beneath C=1182.60 would not be unusual. In fact, it would be perfectly normal IF the narrow failure to reach D turns out to have telegraphed the resumption of the downtrend begun in early July. One final note: If both of these rally patterns are about to fail, neither vehicle is going to pussyfoot with the green line. I would expect the breach of the line to be quick and decisive if we are to assume sellers have the moxie to take out the respective point ‘C’ lows. _______ UPDATE (Feb 13, 10:42 p.m. EST): The mechanical ‘buy’ at the green line (0.87730) triggered on Monday’s opening bar (click here for a chart that shows this). If any subscribers got aboard, even if by way of an entry set-up other than ‘mechanical,’ please let me know in the chat room so that I can establish a tracking position. ________ UPDATE (Feb 14, 7:13 p.m.): There were no reports in the chat room of anyone having done the trade — ‘mechanically’ or otherwise — but it remains valid nonetheless for a shot at 0.91060 despite Tuesday’s Yellen-induced conniptions. _______ UPDATE (Feb 28): Place a stop-loss at 0.87930 for now. If it’s hit, anyone who held the position would come away with a profit of around $1250. _______ UPDATE (Mar 1, 11:33 p.m.): The position was stopped out around 6:15 a.m. for a theoretical gain of $1250. If we’d ridden it to the so-far bottom, we’d have lost $750.
