The futures have consolidated sufficiently to be ready for another big leg up. However, a glance at the daily chart suggests bulls may need to be shaken out one last time before December Gold can get off the launching pad. From an rABC/CI-trade standpoint, the ideal ‘C’ low would occur in the very small space between September 18’s 1490.70 low and August 13’s 1488.90. You should use A=1490.70 to generate a green-line (x) trigger (see inset) even if the point ‘C’ low winds up being slightly beneath 1488.90. Obviously, this trade is intended for experienced Pivoteers. Don’t hesitate to jump on it, though, if there is sufficient clarification in the Trading Room to make you feel confident about participating. _______ UPDATE (Oct 1, 12:35 a.m.): The rABC pattern has yet to trigger a buy signal but is still valid, albeit with a point ‘C’ low that would be well below ‘counterintuitive’ range. Assuming tonight’s 1468.60 low holds, the trade would trigger at x=1481.80 (with a profit target of p=1494.90). Please note that that would imply more than $5000 of theoretical entry risk on four contracts. _______ UPDATE (Oct 1, 11:12 a.m.): The rABC buy signal drum-rolled above triggered at 1478.70 and has quickly propelled the futures to within a hair of a profit-taking opportunity at p=1492.50. Sudden and sharp as the rally was, a stop-limit order at 1478.70 would likely have been filled, since the futures dipped back to 1478.70 a few minutes after breaking out above it. _______ UPDATE (Oct 1, 9:45): The futures have pulled back moderately after triggering the trade noted above and getting buyers to a profit-taking level at p=1491.30 (revised slightly). Several subscribers reported having done the trade and making money on it. However, I didn’t establish a tracking position because the opportunity played out so quickly. A Pivoteer asked in the trading room whether a retracement now to x=1478.20 would trigger a mechanical buy (stop 1464.90). The question is moot, however, because the rally never quite reached our sweet spot midway between p and p2. The ‘mechanical’ buy option remains viable nonetheless, but it’s not as attractive.
