The metals are in another test of support, which is not only unexpected but frustrating. But with each passing day, we draw nearer to the upside breakout from the trading range in which the precious metals have been mired.
Gold
1) The position bought at $1670.60 on January 31, 2013 was sold on the Comex close on February 11, 2013 at $1648.20, which was its stop-out point. Loss: $22.40.
2) The position bought at $1669.40 on the Comex close on February 1, 2013 was sold on the Comex close on February 11, 2013 at $1648.20, which was its stop-out point. Loss: $21.20.
3) Buy one position at the market. Gold is presently trading at $1627.50, so I will use this price for recordkeeping. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1607.50.
4) Buy one position if the Comex spot gold price trades at $1,654.00. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades subsequently at $1,622.00.
5) Buy one position on the first Comex close in New York above $1,685.00. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at more than $30.00 below your purchase price.
6) Buy one position on the first Comex close in New York above $1702.00. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at more than $30.00 below your purchase price.
Silver
1) The position bought at $31.942 on the Comex close on February 1, 2013 was sold on the Comex close on February 11, 2013 at $30.895, which was its stop-out point. Loss: $1.047.
2) The position bought at $31.58 on February 7, 2013 was sold on the Comex close on February 11, 2013 at $30.895, which was its stop-out point. Loss: 68.5¢
3) Buy one position at the market. Silver is presently trading at $30.22, so I will use this price for recordkeeping. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades at $29.95.
4) Buy one position if the Comex spot silver price trades at $31.10. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades subsequently at $30.62.
5) Buy one position on the first Comex close in New York above $31.25. Stop-out point: sell at an intraday stop-out point if Comex spot gold closes in New York more than 50¢ below your purchase price.
Gold/Silver Ratio – On January 31, 2013 traders sold the ratio (they bought silver and sold an equal dollar amount of gold) at 53.0. Stop-out point: Unwind this trade on the ratio’s first Comex close in New York above 56.0.
Comex options (options are high-risk and therefore not for everyone):
Gold
1) The position bought at $1670.60 on January 31, 2013 was sold on the Comex close on February 11, 2013 at $1648.20, which was its stop-out point. Loss: $22.40.
2) The position bought at $1669.40 on the Comex close on February 1, 2013 was sold on the Comex close on February 11, 2013 at $1648.20, which was its stop-out point. Loss: $21.20.
3) Buy one position at the market. Gold is presently trading at $1627.50, so I will use this price for recordkeeping. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1607.50.
4) Buy one position if the Comex spot gold price trades at $1,654.00. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades subsequently at $1,622.00.
5) Buy one position on the first Comex close in New York above $1,685.00. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at more than $30.00 below your purchase price.
6) Buy one position on the first Comex close in New York above $1702.00. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at more than $30.00 below your purchase price.
Silver
1) The position bought at $31.942 on the Comex close on February 1, 2013 was sold on the Comex close on February 11, 2013 at $30.895, which was its stop-out point. Loss: $1.047.
2) The position bought at $31.58 on February 7, 2013 was sold on the Comex close on February 11, 2013 at $30.895, which was its stop-out point. Loss: 68.5¢
3) Buy one position at the market. Silver is presently trading at $30.22, so I will use this price for recordkeeping. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades at $29.95.
4) Buy one position if the Comex spot silver price trades at $31.10. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades subsequently at $30.62.
5) Buy one position on the first Comex close in New York above $31.25. Stop-out point: sell at an intraday stop-out point if Comex spot gold closes in New York more than 50¢ below your purchase price.
Gold/Silver Ratio – On January 31, 2013 traders sold the ratio (they bought silver and sold an equal dollar amount of gold) at 53.0. Stop-out point: Unwind this trade on the ratio’s first Comex close in New York above 56.0.
Comex options (options are high-risk and therefore not for everyone):
- Long one Mar’13 Comex 32 silver call from $1.474, the November 5, 2012 Comex close.
- Long the Dec’13 Comex 1800 gold call from $48.80, the January 31, 2013 Comex close.
- Long the Dec’13 Comex 35 silver call from $1.603, the January 31, 2013 Comex close.
- Buy the Dec’13 Comex 1800 gold call at the market. Buy the Dec’13 Comex 35 silver call at the market. I’ll use today’s NY close for recordkeeping.
- Hold all these calls without any stop-out point, but sell the Mar option on expiry if in the money.