GLD on Track

The February 20, $121 GLD Put tracking position is moving closer and close to the gains expected as GLD looks to be clearly pulling back as expected.

 The 10 min GLD chart that has been suggesting a very clear pullback in GLD.

And on the daily chart, it looks like GLD has broken free of the reversal process zone (top) in yellow and is now clearly pulling back as was expected based on the chart above.


As has been posted in just about every GLD update over the last several weeks, I'll be watching the pullback for signs of what I'd call a "Constructive pullback", one that at some point is being accumulated for a new leg higher as there are some longer term charts suggesting GLD is set to make such a move. The beauty of the pullback (possible) trade is that price has to come to you rather than you chasing it and it has to prove itself by confirming a constructive pullback that has been accumulated. So we may have a longer term long gold position as the pullback unwinds, we'll see if those positive divergences show up as G:LD pulls back, but for now the Feb 20th put position is very close to going green.