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Because there was a large audience on board for this morning’s session, we looked especially hard for real-time trading opportunities. Although there were no magical trades to be found in the E-Mini S&Ps, the December Gold contract turned out to be….well, a gold mine. We were able to identify one entry spot in particular that followed an important rule of camouflage trading: Trust the Force – meaning, don’t hesitate to jump on the very first northbound ABC that has followed a possible swing low. Incidentally, one person in the room said he profited on a mildly promising trade in the E-Mini that we’d identified in real time. You’ll see it in this video -- and hear our reason (though not his) for getting cold feet.

The broad averages were getting shredded on this particular morning, affording us an exceptional opportunity to examine downtrends more powerful than any we’d observed recently during these sessions. Most of the class was spent analyzing in detail the carnage in index futures, which were hell-bound in a way that made nearly every abcd downtrend “work” for Pivoteers trying to get short. In fact, a bearish target at 1085.25 that we’d identified in the E-Mini S&Ps nailed the intraday low within two ticks. All that was needed to provide low-risk entry points were periods of relative tedium lasting for perhaps 20 or so minutes, followed by subtle abc breakdowns on the 3-minute chart. Moving on to Gold’s chart, we took a finely nuanced look at what constitutes “dueling impulse legs.” Nowhere else in the tutorial library will you find so illuminating a discussion of this somewhat subjective aspect of Hidden Pivot analysis.

Gold was strong, and so we took the time to discover the evidence in the intraday charts that had predicted this. Most significantly, overnight abc retracements had failed to reach their respective midpoint supports. Were there any low-risk buying opportunities as a result? The answer is a qualified “yes,” since the best opportunities would have been signaled early in the trend, when most U.S. traders were having dinner; and in the wee hours, when they were sleeping. Following an $18 rally, about $10 worth of upside remained to a 1212.50 target, but we decided that it would take a few hours of sideways tedium to generate a good camouflage entry opportunity. We also found a logical target for Wheat’s parabolic move, and two good places to try shorting the Diamonds.

Rick’s Picks had hit some forecasting bullseyes recently in shares, bonds and gold, so we took a close look at where these vehicles might be headed next. Although we try to come away from Wednesday sessions with a tradable idea or two, in this case neither gold futures nor the E-Mini S&Ps looked very appealing. The latter was in a corrective downtrend; however, with just three more points of downside remaining to the target, we electde to do nothing. Gold was bouncing weakly from within 0.60 points of a correction target at 1155.00, and although we were expecting a further fall to 1140.00 in the days ahead, there was little reason to jump into the thick of a suspected distribution.

Using scalpel and forceps to expose some finely nuanced price action in Gold and the E-Mini S&Ps, we were able to identify Hidden Pivot targets in each that promised to be tradable later in the day with relatively little risk. Both vehicles were falling, and although the evidence was strong that the weakness would continue over the near term, we established clear and precise parameters that would allow us to detect a bullish turn from the very subtlest beginnings. And one more thing. Bill Gross, please take note: 30-Year Bond Futures are going much higher – to at least 128^07.

Sometimes we can learn more on do-nothing days than on days when the markets are hyperactive. Both Gold and the E-Mini S&Ps were in a wallow on this particular morning, and it allowed us to discover reasons why we should temporarily avoid trading either vehicle. We also considered the recent, spectacular move in coffee futures, focusing on some of the reasons why we should assiduously avoid entanglements with the gunslingers who trade this commodity. Finally, we looked a Silver Wheaton and decided that, for this stock, at least, all is right with the world.

Stocks were in gas-bag mode as the class began, providing us with a timely and exhilarating opportunity to predict exactly where the short-squeeze would end for the E-Mini S&P. Our guess got us within two ticks of the actual high – alas, not quite close enough to trigger the short from 1078.25 that we’d agreed upon. We also pored over Comex Gold’s charts on a day when bears were heavily on the offensive. The August contract was down more than $20, but the daily chart was reassuring us that this was healthy and bullish – a correction, probably, rather than the start of a major downtrend.

With good trading opportunities in relatively short supply this morning, we worked mainly on our analytical and forecasting chops. Scrutinizing the longer-term charts of several key vehicles tracked by Rick’s Picks, we found encouraging signs in Gold, while noting evidence of weakness yet to come in Crude, the Euro and the E-Mini S&P. For those who take the time to review this recording within the next day or two, there’s a bonus in the form of a bearish Hidden Pivot target for the June Euro contract that looks like it will be very tradable.

A great lesson on camouflage, this session demonstrates why it is possible even for a relative beginner to hit ten winning trades in a row, and to do so without ever risking more than mere pocket change. By focusing on two very subtle buying opportunities – one in gold, the other in the E-Mini S&Ps – that occurred following steep declines that morning in each, we found a way to board nascent uptrends with calm confidence.