Trading Comments: The Day To Buy

I mentioned the possibility of one more test of support at $1650 and $31. We got it.

Today is the day to buy, but there are two possibilities – either around the time the unemployment number is released, or on the New York close. My guess is the former because I expect the gold cartel will gun for stops under $1650 with the volatility normally accompanying the release of the unemployment data. But the simplest thing to do is to buy strength if we get it during the day, or the NY close if we don’t.

Gold
1) Long one position bought at $1670.60 on January 31, 2013. Stop-out point: sell at an intraday stop-out point if Comex spot gold closes in New York below $1657.50.

2) Buy one position at $1642. Stop-out point: sell if Comex spot gold closes in New York below $1622.00. If not filled during the day, then buy today’s Comex close. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at more than $28.00 below your purchase price.

3) Buy one position if the Comex spot gold price trades at $1,685.00. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at more than $28.00 below your purchase price.

4) 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 $31.91 on January 31, 2013 was sold the same day at $31.62, which was its stop-out point. Loss: 29.0¢

2) Buy one position at $30.88. Stop-out point: sell if Comex spot silver closes in New York below $30.40. If not filled during the day, then buy today’s Comex close. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades at more than 55¢ below your purchase price.

3) Buy one position if the Comex spot silver price trades at $32.25. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades more than 55¢ below your purchase price.

4) Buy one position on the first Comex close in New York above $32.40. 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.

Hold all these calls without any stop-out point, but sell the Mar option on expiry if in the money.