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The low point of this correction is probably behind us. But I am not yet convinced that the correction has ended. In other words, even though support under $1,500 on gold and $35 on silver has held, there may be some more testing of support before the precious metals head higher. The objective should be to buy on strength, when it finally arrives.
Gold
1) The position bought at $1,505.00 on the London AM fix on May 9th was sold on May 11th at $1,496.00, which was its stop-out point. Loss: $9.00
2) Long one position from $1,523.20 bought on the Comex spot close in New York on May 24, 2011. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1.528.50. (updated 29 May 2011)
3) Buy one position on the first Comex spot close in New York over $1,542.50. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at more than $16 below your purchase price. (updated 29 May 2011)
Silver
1) The position bought at $37.50 On May 10, 2011 was sold on May 11th at $36.95, which was its stop-out point. Loss: 55¢
2) Buy one position on the first Comex spot price close in New York above $38.50. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades at more than 55¢ below your purchase price. (updated 29 May 2011)
Gold/Silver Ratio - Sell the ratio (i.e., buy silver and sell an equal dollar value of gold) on the first Comex close of the ratio above 44. I’ll set a stop-out price after this position is filled. (updated 29 May 2011) View all Trading Comments >>
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