GLD daily is near some support and has put in 2 bullish short term reversal patterns, still I just can't get excited about owning GLD, even if it manages a bounce. The volume on the two up days in those Harami reversal patterns in the green boxes are exceptionally light volume.
On an hourly chart, 3C pointed to the top in GLD and is now leading negative, which is kind of a big deal on an hourly chart as this is the longer term trend. As you can see, 3C is making new lows and price should soon catch up to that leading negative divergence.
The 15 min chart shows the same, the top, a leading negative divergence and no sign of any accumulation here.
Even the short 2 min chart can't even confirm today's higher prices
On the other hand, the leveraged GLD short, DZZ looks very bullish, this is the 60 min chart in a leading positive position.
The 15 min chart also leading positive.
And even though it's down a bit today, 3C doesn't look bad.
In my opinion, the market is too volatile to try to trade anything other then what looks to be the closest you get to a sure thing and for me, that means I want to trade stocks that have strong long term trends in 3C, meaning the 15, 30, and especially 60 min charts. The market will be volatile and choppy, I feel a lot better holding a stock through that volatility that exhibits strong underlying strength or very weak underlying action for a short.
No comments:
Post a Comment