Cue the kettle drums, because here’s the no-brainer trade-of-the-month I promised that is designed to make your Rick’s Picks subscription effectively free. We’ll risk a theoretical $84 on it, but if it doesn’t work, keep in mind that just a few of the juicy ‘half-a-brainer’ trades posted in the Trading Room over the last week or so — trades you evidently didn’t want to bother with — could easily have produced gains totaling $5,000 or more. To initiate this one, bid 26.84 for 400 shares, stop 26.63, day order. This is akin to catching a falling piano, and the stop-loss is tighter, probably, than what you are used to. Nor do I have to tell you that merely training on an exact number where we expect a significant price reversal to occur, and for hundreds of subscribers to make an easy $200-$500 on the rally, is enough to queer its magic power. In any event, the precise entry strategy is how the Hidden Pivot Method rolls, and you can expect the 26.82 midpoint support to work precisely or not at all. (Actually, if it were to be exceeded by 70 to 80 cents, a rally back up to the green line would make GDX an attractive short.) Have fun! _______ UPDATE (Mar 10, 12:20 p.m. EDT): Yeah, that was fun all right. The trade was stopped out quickly for an $84 loss as gold was getting pounded by a short-squeeze rally in stocks. Don’t think that because GDX looks like hell today it won’t go even lower tomorrow. With today’s unexpected penetration of p=26.82, GDX has signaled more downside to p2=25.24, or possible even D=23.66. This is congruent with a $1.00 drop in Silver that appears imminent. Gold futures, however, are inconclusive and can be traded from either side of the market.
