Wednesday, November 3, 2010

GLD Pull Back Over?

Of course the Fed's announcement could change everything in a blink of an eye, but 3C has been showing not only the bounce in GLD, but the end of the bounce. As I said in last night's analysis, GLD set up a reversal formation (downside) called a Harami despite it being up nearly .5%, today we are seeing a pretty nasty drop thus far-the really spectacular sight on this chart is not the drop, it's the volume this early in the day.

 First arrow shows a top in GLD on a negative divergence, the second shows a top in the bounce and the small third shows what is quickly leaning toward a leading negative divergence, the most aggressive kind. I hope some of you made some money in this trade.

Here's the Harami pattern from last night-"Mother with baby" and today's confirmation of the reversal signal, but more importantly, higher volume already today in the first two hours.

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