GCZ19 – December Gold (Last:1508.60)

Careful! I’d practically guaranteed a run-up to at least 1535.90 over the near term, but it was not to be. Bulls who were counting on it got sandbagged on Friday — or perhaps worse, since the high occurred just inches from the secondary pivot, 1521.40.  Hidden Pivot geezers will recall that when a rally reverses from very close to p2, the retracement often goes on to stop out the point ‘C’ low of the pattern. This is known as ‘Matt’s Curse’, named after the 15th Century explorer who set sail for the southern tip of Florida but got no further than the Bermuda Triangle  Matt’s Curse has yet to be statistically validated, but even so, the gratuitous nastiness of Friday’s reversal warrants caution, since it suggests that we, meaning everyone who trades this vehicle, had grown just a tad too bullish. If the retracement comes down to the green line (x=1492.50), I’d be tempted to execute a ‘mechanical’ buy there, stop 1478.00, but let’s play it by ear for now. ______ UPDATE (Oct 28, 8:05 p.m. ET): The trade triggered, but you should check the Trading Room for alternative entry strategies (and my rating, a 6.9), since the ‘mechanical’ one has initial risk of nearly $1,500 per contract. Just one subscriber, using mini-contracts, reported getting aboard. I’d suggest taking off at least half if the futures make it to p=1507.00. _______ UPDATE (Oct 31, 8:57 a.m.):  A nearly $30 rally from yesterday’s  headless-chicken low has hit 1512.20 so far, allowing exit from half of a four-contract position at $1507.  The gain on two contracts would have been $1900 for anyone who did the trade. Offer another contract to close at 1535.40, half a point below the original target. _______ UPDATE (Oct 31, 5:49 p.m.): Bring the offer to sell one contract down to 1532.00, and tie it to an o-c-o order stopping out the remainder of the position at  1506.90. _______ UPDATE (Nov 1, 8:53 a.m.):  Minutes ago, sellers took out all prior lows on the 15-minute chart in one nasty bar, stopping out…everyone. The total profit would have been a tad less than $3400 for any subscriber who followed my guidance exactly. Please let me know in the Trading Room how you fared.