Hellooooo Mr. Gold

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Can markets be forecast?

“Few have any idea of high the metal (gold) can scale the golden wall of worry.”

The above is from the December 22nd, Hit and Run Report, Gold and Silver on the Launching Pad.

We went on to say, “Regular readers will recall that we targeted the 233 region in GLD this past summer”

Back on October 10th, 2023, just days after gold struck a low on October 5th at 168, we put out a report, Is A Gargantuan Gold Run At Hand?, stating, “…there is a trifecta of technical that could trigger a cascade move higher.”

On Friday, February 2nd, Hit and Run noted, “We could get fireworks because GLD is flirting with a breakout over a 4 year Tops Line.

See chart from that report below.

On March 7th, Hit and Run followed up with GOLD, When Will The Melt Up Begin  stating “I think there is a strong likelihood we’re about to echo the 2019-2020 parabolic run—at a minimum.”

So what’s happened?

GLD broke out on March 1st.

On that day it triggered a large range Rule of 4 Breakout above a 3 point trend line as well as an Expansion Breakout, a large range breakout to a new 60 day high.

180 degrees up from the prior swing low of 183.78 on Feb 14 is 212.

Wanna get your mind blown?

On Wednesday GLD exploded again striking 212.83.

However,  a Measured Move may be on the table  to 218.

From the 183.78 low to the initial rally high at the key 203 level is 19 points

Adding 19 points to the pullback low at 199 on March 19th gives 218.

At the same time April 4, today, squares out with 216/217.

Be that as it may measuring from the Uptrust on March 1st to the initial March 8th high is 14 points.

A Measured Move of 14 points from the March 19 pullback low is 213.

On Wednesday GLD struck a high  of 212.83.

It would not be surprising to see a pullback here or from a spike to the 216-218 region.

That said, let’s recap the bigger picture.

From the October 2022 low of 150.50 a 360 degree advance is 203.

That’s why GLD exploded clearing 203.

Notice GLD left a weekly Signal Reversal Bar on the week of March 18, 2024.

GLD tailed off leaving an outside down week.

THERE WAS NO DOWNSIDE FOLLOW THRU.

Follow thru is key.
Instead, GLD offset the prior weeks high in a Reversal of a Reversal (a Keyser Soze buy signal).

That event lit the fuse for a further explosion this week.

While Hit and Run has been bullish on gold for months, we started loading the boat 3 weeks ago capitalizing on the move with positions in:

  • AEM April 19 $60 calls where we booked a 4 bagger
  • AGQ bot Tuesday up 3.69
  • GDXU from March 25 up 8.60 on the balance of the position
  • GDXJ from Mach 20 up 5.36
  • WPM from March 20th closed out for a 5.45 gain
  • UGL from March 25 up 7.63 on the balance of the position

Yesterday Hit and Run closed longs in GLD calls up just shy of 100%

As well as gold miner MUX from 7.50 closed out at 9.95.

Integrating Hit and Run signals with the Square of 9 Time/Price Calculator was the key to these explosive gains.

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It is one thing to recognize a setup. It is another to have the confidence to realize outsized gains.

Anyone can get into a trade, the art of the Square of 9 Wheel is its ability to project time and price into the future to maximize gains.

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