With virtually all intermediate-term cycles pointing lower, we'll look for defensive plays. The p midpoint resistance shown (157.36) is a good place to start, but this trade will require a 'camouflage' approach. (Note: In the future, I plan to offer straight trades --i.e., without camouflage -- at 'D' targets if the opportunity should arise.) Accordingly, using the three-minute chart, I'll recommend buying a multiple of four July 150 puts on the first downtrending 'x' trigger following GLD's initial encounter with 157.36 on the way up. Alternatively, for those who favor a simpler approach, you can short 400 shares at 157.33, stop 157.41. _______ UPDATE (June 13, 7:18 p.m. EDT): Yesterday's gap-up opening stopped out shorts from 157.33 for a theoretical loss of $32 on 400 shares (plus commissions). Shorting opportunities on the three-minute chart remain viable nonetheless, although I could find no appealing ones myself in the forest of mostly trendless bars (see inset, a fresh chart) that followed the opening. If you are able to get short using my instructions, please let me know in the chat room so that I can establish a tracking position for your further guidance.
GLD
GLD – SPDR Gold Trust (Last:171.61)
– Posted in: Current Touts Rick's PicksRead 'em and weep, as the saying goes. The wholly legitimate impulse leg shown projects to 163.81, but with a chance for a reprieve at 169.06, a Hidden Pivot midpoint. Let's stipulate that GLD must close beneath that number, or trade more than 0.10 points below it intraday, before we infer that the target will be reached.
GLD – SPDR Gold Trust (Last:110.93)
– Posted in: Current Touts Free Rick's PicksSomeone in the chat room mentioned Tuesday night that GLD had a cleaner downtrend than February Gold, with no "sausage" B, so I thought I'd have a look. True enough, and if you can contrive to ignore the fact that there is no one-off 'A' on the hourly chart, there's a 106.12 downside target to use -- a little more than 4% below these levels. This is more or less in line with the 1094.30 target given for the futures, but it has been more clearly corroborated by the rally from 110.21, which lies just 0.04 points from the midpoint support. Bottom line: You can use 110.17 as a fail-safe point for gold over the near term. If the support is breached, it would likely spell more weakness over the near term. Alternatively, GLD would need to print 115.36 today to turn the hourly chart unambiguously bullish.
GLD – SPDR Gold Trust (Last:114.72)
– Posted in: Current Touts Free Rick's PicksIf you shorted on Monday at 115.10 as advised, you were in within 0.02 points of the top. The pullback so far has been shallow but nonetheless sufficient to allow for relaxed profit-taking. Now, I suggest covering all but a small piece of the original position so that you will still have a nice profit if you need to cover what's left above Monday's high.
GLD – SPDR Gold Trust (Last:111.97)
– Posted in: Current Touts Free Rick's PicksCareful now, since, as you can see in the accompanying chart, GLD is very close to achieving the highest target that can be projected using the daily chart. It lies at exactly 115.10, about 2.8% above current levels, and we'll try to short it if and when the rally gets there. Long-term bulls are advised to lighten up, since it seems highly unlikely that buyers will be able to power past the resistance on first encounter.
GLD – SPDR Gold Trust (Last:92.29)
– Posted in: Current Touts Free Rick's PicksWith gold futures approaching a tradable turn, we can try bottom-fishing in this vehicle by bidding 3.10 for _____ calls. That would be an attractive price if the stock dips down to _____, a Hidden Pivot support, before turning around. You can pay a 0.10 to 0.15 more if the calls are out of reach.
