Follow up, gold, OWTM gold

Back on Dec. 23, we called your attention to a potential buying situation in gold, based on our reading of commercial net short position. It's something we follow weekly in a spreadsheet we call Option Wizard® Trading Method Gold.

How did it fare?

The week following our post, gold declined from a Friday close of 1605 to 1565, but rebounded from there for the gain we had foreseen, based on past history:

1725.40	2/3/12	209,862
1737.50	1/27/12	179,768
1666.60	1/20/12	172,976
1637.20	1/13/12	166,574
1616.60	1/6/12	161,843
1565.00	12/30/11	163,932
1605.00	12/23/11	164,554

Plus 8% from 1605 to 1737.50, with a $40 drawdown along the way. It's never easy, but tools like this can help put the odds in your favor.