Tutorials

Summer doldrums produced few compelling trading opportunities, but we were able to find things to do nonetheless in the E-Mini S&P, and in gold futures. We spent the entire hour considering tradable nuances in each, with the goal of initiating trades that were as close to riskless as possible. Comex Gold's charts proved somewhat frustrating in this regard, and therefore especially rewarding from the instructional point of view.

The day's trading recommendations for Gold and the E-Mini S&Ps were proving unhelpful, since both were trending higher against bearish forecasts. However, that didn't stop us from extracting a good deal of useful information from their respective intraday charts. The session focused on camouflage entry opportunities, specifically those that arise when a trading vehicle is not following the forecast. We found plenty of things to do, and, by day's end, we had not been fooled by the morning's false strength in shares.

This session is one of the best ever. We spent most of the hour finding all of the tradable possibilities in the intraday charts of July Crude. A large pattern was predicting a $7 rally, from $67 to a potentially important top near $74. However, our strong incentive to find a way to get long came days earlier, when a thrust exceeded the $74 target's sibling midpoint. Thereafter, we discovered nearly riskless opportunities to get long within moments of the ultimate bottom at 66.78. If you want to see the value of "camouflage" in intricate detail, this session is an absolute must.

We dwelled mainly on two trading vehicles: Comex Gold and the E-Mini S&Ps. Our purpose in scrutinizing the latter was to identify trends and trading opportunities within various time frames. Analyzing Gold, we perceived early in the session a growing reluctance of buyers to challenge what was later to become an onslaught of selling. August Gold finished $20 lower on the day, while the E-Mini settled about 10 points lower. We also looked at the Dollar Index and talked about how we could prevent being caught off guard by a bullish trend change beginning from below an already compromised, key support.

We looked at two of our favorite trading vehicles, namely Comex Gold and the E-mini S&Ps, and found little to comfort anyone who is short either. Goldman Sachs was keeping an otherwise weak market buoyant, so we focused on the stock's immediate prospects -- specifically, on the high likelihood of a run-up to a target 5 points above. We also pored over the intraday charts of July Wheat, finding some very low-risk entry points to board a rally that looked bound for at least $6.37 per bushel. Natural Gas was bullish as well, but after considering the quality of its impulse legs, we reasoned that a cautious entry was warranted, if at all.

Gold was trading moderately higher this morning after having pushed past a key peak at 935.80. Despite this, there were subtle hints that the time is not right for an historical push above $1000. I took pains to explain why, using Hidden Pivot analysis. We also employed "camouflaged" impulse legs to create a bottom-fishing opportunity in Goldman that did not pan out. Even so, we could have come away with a small gain despite the inopportune timing. That is the beauty of "camouflage," and the reason why I continue to emphasize it in the seminar and weekly tutorial sessions: You can trade all day long, picking bad entry points, and still come away with a profit. To end the session on a tradable note, we looked at very short-term trends in the Industrial Average, July Coffee, and the E-Mini S&P.

We took a good look at July Silver, since it looks to be quietly consolidating for a major push. There were some promising ways to get long ahead of the move, and we examined them in detail. We also found a short in the E-Mini S&P that was in the process of delivering gains of as much as $500 per contract within the hour. Any rally that followed and which exceeded the ES target at 912.25 was all but guaranteed to reach 917.75, or possibly 933.50, for reasons made clear in this video. We also touched on some of the ways in which Hidden Pivot analysis can help bring us to a basic understanding of the psychology of the market.

We took a close look at Goldman Sachs' charts, since the stock holds the key to the bear rally begun in early March. We then found a corresponding rally target in the E-Mini S&P that was not far above existing levels. Finally, we discovered reasons in May Silver's chat to be more bullish on June Gold. A target identified in Gold came within $1 of nailing the high of a preditably weak rally.

It was a dull morning on Wall Street, so we focused on trading in boring, trendless markets. June Gold promised to deliver a very tradable, $8 rally never theless -- and later did -- while the E-Mini S&P appeared bound for a midpoint resistance or higher. We also contemplated a buoyant Industrial Average that was headed for an imminent trend failure. Were there clues?