For years, gold’s corrections have been brutal, and that is why many erstwhile bulls have not rushed to buy this rally. They have instead been waiting for a nasty pullback in order to load up at bargain prices. But Mr Market has not obliged. Instead, retracements have been shallow and rallies steep. The latter have often occurred after-hours, but in one recent instance via a trampoline bottom that came early in the day.
By playing hard-to-get, gold is displaying the most encouraging signs we have seen in a long, long while. This evening the August Comex futures have uncorked a 25-pointer, impaling a midpoint Hidden Pivot resistance at 1444.40 that is tied to a 1504.00 target first broached here weeks ago. That is my minimum upside objective at the moment and it should be yours as well if you trade this vehicle. If you want to see how some pros are boldly trading the move so far using GDX call options, stop by the Rick’s Picks Trading Room.
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