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September 9, 2019 | Beware of ‘Falling Piano’ in Gold

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

It’s been a while since gold took out any important lows on the hourly chart, but the Comex December contract was close to doing so late Monday night. This has caused the daily chart to become fairly oversold, although that doesn’t necessarily mean the futures are about to reverse and trampoline higher. Rather than try to catch a potential falling piano, we’ll give the correction time to shake out fair-weather bulls before we attempt to get on board. Regardless, a bottom-fishing trade in GDX that was posted (with chart, at 12:19) in the Coffee House can give us something to do without risking too much.

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September 9th, 2019

Posted In: Rick's Picks

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