GCG22 – February Gold (Last:1825.70)


The ‘reverse’ pattern shown triggered a ‘mechanical’ buy on Friday slightly above the green line I’d flagged at 1783.20. A subscriber who reported doing the trade didn’t say how, but I’ll assume a tight ‘camo’ set-up was used that might have triggered as low as 1783.90 (for instance: 60-minute, reverse a= 1785.40 on 1/6 at 9 a.m.). I’ll recommend exiting half the position on the opening Sunday night, since gold’s rallies have been balky and short-lived.  Thereupon, implement a trailing stop that would put half of any profits booked up to that point at risk. A third contract should be offered $10 higher, but check back, since that could change depending on how this vehicle opens on Sunday. ______ UPDATE (Jan 10, 7:13 a.m.): Exiting two contracts at 1796.40, Sunday evening’s opening price, leaves two contracts (or 50% of the original position) with an effective cost basis of 1770.00. Offer half of what remains at 1813.30, just below the pattern’s midpoint Hidden Pivot, with an o-c-o order stopping out the entire position at 1785.60. (This is an ‘impulsive’ stop on the 30-minute chart that references two very recent, external lows.) _______ UPDATE (Jan 11, 8:55 p.m.):  If you followed my instructions, you’re sitting on realized gains of $4,300 and are still long a single contract (or 25% of the original position) with an unrealized gain of $5,000. Use an 1801.00 stop-loss for now, O-C-O with an order to exit the remainder of the position at 1839.  A ‘dynamic’ trailing stop can be substituted above 1828. ______ UPDATE (Jan 12, 5:23 p.m.): The dynamic stop suggested above triggered at 1825.40 after the futures topped at 1828.20.  The total profit on the position would have been around $8000. Do nothing further for now.