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The precious metals are fighting their way higher. Important upside breakouts will be achieved with closes above $1375 and $28.80. I expect those levels will be exceeded soon. With commodity prices across the board racing to new record highs, it won’t be long before the precious metals are joining them.
Gold
1) The position bought at $1333.50 on the 31 January London AM fix was sold on February 1, 2011 at $1327.50, which was its stop-out point. Loss: $6.00
2) Long two positions from $1339.60 bought on the Comex spot gold close on February 1, 2011. Stop-out point: sell one position at an intraday stop-out point if Comex spot gold trades at $1324.50. If stopped out, then re-buy this position on the first Comex spot price close above $1334.00. Sell one position at an intraday stop-out point if Comex spot gold trades at $1317.00. (updated 2 February 2011)
3) Buy one position on the first Comex spot gold close above $1342.00. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades more than $18 below your purchase price. (updated 2 February 2011)
Silver
1) The position bought at $28.174 on the January 31, 2011 Comex spot silver close was sold on February 1, 2011 at $27.925, which was its stop-out point. Loss: 24.9¢
2) Long two positions from $28.524 bought on the February 1, 2011 Comex spot silver close. Stop-out point: sell one position at an intraday stop-out point if Comex spot silver trades at $28.18. If stopped out, then re-buy if the Comex spot price the same day trades at $28.45. Sell one position at an intraday stop-out point if Comex spot silver trades at $28.06. (updated 2 February 2011)
3) Buy one position on the first Comex silver spot close above $28.84. Stop-out point: I’ll set a stop-out price after this position is filled. (updated 2 February 2011)
Comex options (options are high-risk and therefore not for everyone):
Long two Mar’11 Comex 26.00 silver calls from $2.267, the November 15, 2010 Comex close.
Long one Dec’11 Comex 1500 gold call from $50.80, the February 1, 2011 Comex close.
Hold these calls without any stop-out point. (updated 2 February 2011) View all Trading Comments >>
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