GLD Follow Up

 Above is the first half of the PUT position closed yesterday at a 36.71% gain.

When the second half was closed just moments ago, the gain was less at 36.57 % even though GLD was lower this morning than when the first half was closed yesterday. I showed you the rate of change in price and that's why I closed the first half, that hasn't improved, even though GLD is lower and the options are reflecting that. In my view there's no reason to leave the risk position on when the probabilities are that the profit will decline, as mentioned in the last post, I'd rather just re-position the trade at a better entry.

 I suspect GLD is finding some short term support at the gap created on the move up from our last long trade in GLD, which was very successful.

 Here's today's 5 min rate of change, obviously improving as GLD starts trading in a lateral range.

 The longer term 3 min chart also shows near term 3C momentum fading with a relative positive divergence (this reflects short term trade such as an intraday correction to the upside or a consolidation -both of which would cost the put position profits.

 Close up of the 3 min chart shows a positive divergence combined with a flat price range, I see no reason to stick around at this point.

 However, the 60 min chart has significant damage and until there's improvement, I will continue to look for short term price strength to short in to.

 The short term Trend Channel stop for this trade-GLD could easily move through that stop in a matter of minutes, leaving the PUT position at a possible loss.

 Longer term, so long as the daily Trend Channel is not broken to the upside, I'll keep looking for these short side trades in GLD.

Longer term I suspect GLD may be shaping up and there may be a long term trending trade, but I believe before that happens, the obvious support level seen above will be taken out and run out the gold longs that remain.

The daily chart shows the negative divergence at GLD's highs in 2011, which as I suspected, created at minimum, an intermediate downtrend, I also considered a primary downtrend which we are just of the edge of, a break below that support level will confirm a primary downtrend. However as 3C shows, we have seen accumulation 2x now at the support level, this is why I think we may be preparing for a renewed primary uptrend in the future, perhaps at the next F_O_M_C meeting.

Take what the market offers.