Wednesday, August 31, 2011

GLD in a strange spot

I've been thinking for 3-4 weeks now that GLD may be headed for a test of t's long term moving average (150-day) where t pulls back to one or twice a year and makes an excellent buy. About a month ago I stated that I think many market correlations are going to fall apart and right now the first one I'm really curious about is gold. GLD used to move inversely aganst the dollar, but recently it's moved wth the dollar as a safe haven trade and ertanly when there's any talk of QE. I'm very interested to see what GLD does in a falling market, f the recent correlation holds up or if GLD is cut lose and now on t's own, being manipulated lower for heavier accumulation by central banks and others.

Here's the charts for today thus far.
 GLD 30 min has been fairly negative

 This is the recent bounce up we traded for a few days and the subsequent reversal on a 15 min chart, note there was no positive divergence at the red square when GLD moved higher.

 The 5 min chart shows a negative divergence yesterday and GLD made good on that this a.m., since there's been a bit of accumulation and t's about in line right now with price.

 The 2 min chart also showed a negative divergence yesterday suggesting downside today, however the bounce this morning to attempt to fill the gap is seeing some selling pressure.

And the 1 min chart just speaks for itself.

No comments: