April Gold tripped a buy signal when trading got under way Sunday night as 1236.00, but upside potential was limited to perhaps $9 over the near term, and so I am not recommending the trade except to night owls who know how to execute a ‘camouflage’ entry. A push past the 1238.90 midpoint pivot would make the 1244.80 target an even-odds bet. Until Friday we’d held a single-contract tracking position with a cost basis that had been reduced by profit-taking to 1174.40. The 1225.00 stop-loss triggered late in the day, terminating the position with a theoretical gain of $5060. The details of the trade, with time stamps, are on the chat room Scoreboard. For what it’s worth, Porter Stansberry mailed out a letter from Steve Sjuggerud that is calling for an imminent bottom in gold. For my part, I’ll need to see more evidence on the charts. Specifically, if and when the April contract pushes above the election night high of 1343.90, I’ll become more receptive to his and other bullion bulls’ arguments.
