AheadoftheNews.com

NYSE, which gave us the heads up on the February top (at least on this blog), is now less than 120 points away. As a reminder, the "magic" number was 100% projection 2000/2002 at 9455. NYSE closed today at 9341. Keep an eye on this index. Shorts will get more aggressive if we fail to get 9400 back.

This is from an OI reader who took my call to buy gold at 639 a little over a week ago. Targets are still valid, re-printed here for those readers of the blog who are long gold.

Hi Marc, Hope all is well. I took your recommendation to buy YG April @ 639 and rode it to 660. Nice call, especially on a 20 lot....hah. I re-entered YG June @ 663.50 today (10 lot) and am wondering where a good stop level should be placed? I'm thinking 660, but I put it in @ 659.25 to be safe. I'd like your thoughts on this as I'm afraid I might have put it in too low.
Thanks, Dan

Good move Dan. Quick math, you made $27,000 on that trade. Not only that, you made a perfect re-entry on the June contract (you're up $2300 there). I would put my stop at 663, a little over a point below 50 DMA support. Targets on the trade are 675, 686.60 and 694, if we breakout above 675 (Feb gap open). If you are trading multiple contracts, take some off at each resistance level. Consumer confidence tomorrow will dictate further gains. As you now, I am expecting 850 by the summer, but that might be too wild for some. (I think 750 is very, very likely). Oil could go out the roof on a major hurricane season (80+). Global warming is going to be freaky.
For now, 663/664 must hold (June contract, for April that would be 657/658).
Marc.

Note to the readers: I am trading the June contract, as I took the rotation early on the pullback.

This entry was posted on Monday, March 26, 2007 at 3/26/2007 08:47:00 PM. You can skip to the end and leave a response.