PMs Update

Here's yesterday's post about seeing a bounce coming up in GLD/SLV

This is from this morning, outlining what the charts were showing and what to expect

And here is today's intraday 2:30 update so you can see what has changed since.

Here are the charts as of the close today for GLD/SLV

 GLD showed a negative divergence this morning, but I said that it would still go on to make higher highs, the 1 min chart (above) is showing the intraday action and the longer term charts were still very positive, telling us GLD would pullback a bit, but continue to make higher highs as you can see GLD did since the 11:30 a.m. update. However, at some point we expect to see distribution and that occurs in to higher prices or a flat range bound market. The 1 min chart is now showing signs of distribution of yesterday's and today's accumulated position. The distribution will show up on the 1 min chart first and work its way through the longer time frame charts.

 This 5 min chart shows several days of action from distribution in to new highs that caused the reversal, to yesterday's accumulation in white. Between yesterday's accumulation and this morning's gap down accumulation, there's an average price paid on the position, since we are seeing signs of distribution on the 1 min and now the 5 min chart, we know that GLD is trading above their average price paid position.

 The 15 min chart is where the reversal will most likely take place (when the 15 min chart goes negative), we can see yesterday's accumulation pretty clearly and today 3C made higher highs with price until this afternoon. You can see GLD moved higher but 3C stayed at the same level, so traces of distribution are now creeping in to the 15 min chart. We probably still have some more upside in GLD as distribution take place in to demand, not on declines in price. I would think that sometime tomorrow, GLD will be close to if not at a downward reversal. I know some of our options players were up over  100% yesterday on their GLD position, I wonder how they fared today?

 SLV was expected to be the weaker of the two PMs as of yesterday, but it did outperform GLD today. The white box represents the average area of accumulation yesterday, then add this morning's accumulation at the gap lows and you get an average position price much lower then the white band. SLV 1 min is also starting to show signs of distribution on the 1 min chart as SLV made higher highs in the afternoon and 3C stayed lateral.

 The 2 min chart shows several days worth of data from the negative divergence/distribution in to the high of SLV to yesterday's signs of accumulation. Today in the afternoon we can see the 2 min chart moving lower as SLV moved higher, so distribution is underway in SLV on this longer chart as well.

For newer members, this is an interesting dissection of Silver and how Wall Street uses Technical Analysis in its historical form, as practiced by most technical traders, against you. We saw the action in SLV on August, 18th and knew that it was going to reverse. 3C and our understanding of Wall Street and technical traders even allowed us to know exactly how it was going to go down, from a move higher to a failure of SLV's uptrend, it's an interesting read for anyone who wants to understand how Wall Street really operates. Here's the link.

 SLV's 5 min chart shows accumulation yesterday(white arrow), confirmation of the uptrend today (green arrow) and signs of distribution today (red arrow).

The 15 min chart shows the reversal of SLV's uptrend and a strong leading positive divergence currently. There are no signs of distribution on this chart yet, so SLV should have more upside, but I expect the 1, 2 and 5 min charts will start bleeding into the 15 min chart and by tomorrow we'll have signs of distribution and perhaps a reversal.