February 6, 2016
Although ‘New York Comex Spot Gold’ (“Gold”) broke 1147.00 early yesterday morning, it did not do so decisively. Martin Armstrong had said that the key Weekly sell signal to watch was 1143.00 and if Gold had broken below 1143.00 then we certainly would have sold half of our position. However, we watched in awe when Gold hit 1146.00 and then bounced of that number and rocketed back up. Gold went as high 1167.60 and closed at 1150.30.
Consequently, for now we will stick with our money-making high/risk GLD Calls until we get a decisive sell signal from Socrates, after which we will take a bearish position by purchasing a Put for what we expect will be the mini-crash event.
With regard the above Paragraph, please note what Martin Armstrong told us at the November 7 and 8, 2015 WEC in Princeton: “In the short-term ‘Pi Day’ is March 14 when we will see a Directional Change”. A Directional Change can be a High or a Low but, as we see it, the indications are for a potential Low.
This is what the Socrates analysis this morning regarding the New York Spot Gold opening for Monday February 8, 2016:
Daily: WARNING Important Temp High
Weekly: Moving Higher
Monthly: Pushing Higher
Quarterly: Still Bearish
Yearly: Turning UP
As you can see Socrates indicates a Temporary High for Monday and says:
“Gold is trading in a bullish posture above our cyclical based standard deviation envelope defined as 1132.80 to 1058.50. Breaking outside this envelope on a closing basis will often signal a sharp move will follow in the direction of that closing. Combining this with our Reversal System provides a powerful tool to ascertain a change in immediate trend”.
As per the Socrates Weekly and Monthly forecasts, we going higher and therefore we are staying with our GLD February 26 Call positions with a strike price of 100. Our GLD Calls track the price of gold and they are a very, very high/risk but, potentially they could become a high/reward Trade. In fact, all Option Calls and Puts are very high/risk but, as afore said, they do have the potential of a high/reward.
For those of you who have not entered a position in the yellow metal and are risk adverse you can still enter a Trade in a normal GLD ETF (http://etfdb.com/type/commodity/precious-metals/gold-etf/) or any other investment instrument that reflects your investment risk level.
Socrates tells us that on a Daily (Monday) we should see a Temporary High which indicates that there is the potential for Gold to go down during the week so you still should be able to get a reasonable position at a price within the standard deviation envelope noted in a Paragraph above.
As per the Quarterly forecast, it is Bearish, which looks like a further indication of a possible Mini-crash into March/April 2016.
Happy money-making trading my Friends,
Direct: +1 (604) 657-4058
About Nick Nicolaas: http://www.mininginteractive.com/about.html
February 6, 2016