News out late Friday afternoon that Buffett had taken a $563 million stake in Barrick Gold (GOLD) was greeted with proper enthusiasm, although it remains to be seen how much of the gusto will spill into Sunday’s opening. The stock rocketed more than $2 in after-hours trading to close at 29.18, the intraday high. Comex futures had stopped trading by then, but they should see a boost when activity resumes Sunday evening. At the very least, buyers should be able to push the December contract to the p=2008.90 midpoint Hidden Pivot shown in the chart (inset). Any higher, especially a two-day close above p, would shorten the odds of a further move to the pattern’s 2143.50 ‘D’ target. This number was broached here earlier and can serve as our best-case scenario for the week ahead. Even so, I plan to lay out a small, tightly-stopped short near 2008.90 if buyers do not demolish the resistance on Sunday’s opening. This is just a straightforward, buy-the-rumor, sell-the-news bet. _______ UPDATE (Aug 18, 5:54 p.m. ET): A gratuitous mid-morning swoon was recouped quickly, but bulls were subsequently unable to take out the earlier high. If the futures go nowhere for another day or two, they made need to pull back for a running star at 2143.50. P=1930.40 of this pattern would be a logical place for a bottom and a good place o try bottom-fishing. _______ UPDATE (Aug 19, 8:21 p.m.): The 1930.40 target drum-rolled above caught the low of today’s $80 plunge within a dime. If you bottom-fished there as I’d suggested, the trade could have produced a quick gain of as much as $6,400 on four contracts. Since no one mentioned having done the trade, I have not established a tracking position. Further slippage would put the 1837.10 ‘D’ target in play. but p2=1883.80 at least. _______ UPDATE (Aug 20, 5:33 p.m.): December Gold spent all night and an entire day pussyfooting with the 1930.40 midpoint pivot support, providing diligent traders with a temporary profit center. The $30 bounces may have been fun to trade, but that’s not quite enough to get the futures off the launching pad, let alone rebuke the scumbags who beat this vehicle down so savagely on Wednesday. If the bad guys win, gold will be on its way down to at least p2=1883.80 at least, or to D=1837.10 if any lower. Alternatively, if they can endure just a little more lunacy in AAPL, which faces crucial resistance at 490, they may yet regain their mojo for a shot at the 2143.50 target flagged above.
GCZ20 – December Gold (Last:1955.60)