GLD Update

This is why I was warning about GLD not only the last few weeks, but Friday specifically.

Head Fake Alert Warning since the head fake is the last thing usually to occur when we transition from distribution to a reversal, this post was sent out Friday followed by...

Warning 2

 Here's the moving average that I said usually shows a reversal in GLD, clearly it was taken out this morning.

 This 5 min chart gives a more specific area of where accumulation started, since it wasn't a huge position the White box is about the area of accumulation and the white trendline is probably a decent idea of the average accumulated price. As you can see, they will always lift prices above their accumulated average before starting to distribute, the triangle that formed was a perfect head fake as it told traders that GLD was going higher, giving Wall Street demand to sell in to or even go short. However, distribution was clearly evident, between the distribution and the head fake, it was time to take some profits as I said in my second post about "Pigs get slaughtered". I hope this is a good example for you of how Wall Street really operates.

 The 1 min chart confirmed the gap down, there was some early accumulation to try to fill the gap which faded, on this chart 3C is running ahead of price a bit so there's a slightly bullish intraday bias.

 The 2 min chart confirmed the gap down, showed the same early accumulation and right now is in a leading negative position, so I expect a little choppiness in GLD in the near term.

 The 5 min hart shows the triangle that sets up the head fake-technical traders just won't learn, furthermore the gap don is confirmed and we have a negative leading divergence suggesting after and through the choppiness, the path of least resistance is still down.

As you can see, the important 15 min chart has a relative negative divergences, the two yellow areas are the comparison points between 3C and price. In short, I expect some choppiness, maybe an attempt to make a new intraday high, but over the longer run, it looks like this will end up being a reversal of the short bounce up. Note there wasn't a lot of accumulation to start this move so we wouldn't expect a very big move up.