No November Repeat

As the PBoC cut rates this morning, I think many traders thought back to the November globally coordinated Cen. Bank rate cut in which China was first, followed by the US and the EU. After Yellen's comments last night combined with the Chinese action, the market was convinced a rate cut from the other 2 banks would be announced this morning and Gold as an indication of QE bias/sentiment showed its disappointment quite clearly. I will say with recent F_E_D speakers sounding dovish and Yellen's comments, the Bernie testimony was very strange, there's some good cop/bad cop game going on at the F_E_D and I'm really wondering what this is all about. So where to now for gold?

 GLD was moving sideways during the Bernie Q&A session looking for hints, when none came GLD moved lower, but there were positive intraday divergences.

 Here's the bearish continuation pattern traders would have been watching, the volume alone on the break to the upside rather than the downside, clearly shows it caught traders off guard as they stopped out or bought to cover, a classic manipulation of the predictability of technical traders, but we had an inside line via 3C telling us a breakout was highly likely and although I missed the trade, many members caught it and made good money. I still don't know why I didn't take that signal which was very strong. As I talk about often (especially in regard to keeping your emotional state of mind in your trade journals), I think I subconsciously have a mental bias against trading in GLD after having seen so much manipulation of precious metals. That's an honest assessment and the kind of information you'll find in a detailed trade journal which will reveal trends in your trading both good and bad and allow you to correct and deal with the bad ones. I obviously need to work on my view of PM's when such a strong signal is present.

 GLD 1 min was positive earlier, this is almost a carbon copy on a micro scale of the accumulation in CHK.

 The GLD 2 min

 GLD 3 min today

 And the 5 min, all suggesting GLD in the near term is going higher.

 The 15 min positive on the 30th-the signal I saw and passed on to you, but didn't take. Now the 15 min has gone negative.

 The very strong 60 min signal on May 30th, the next day GLD had that huge pop. This is now going negative. "If" I was in the trade, this would be my game plan based on what we see now.

I'm thinking based on the shorter term signals GLD is going to try to move higher, either to this morning's gap area or above the local highs and then sell off from there. I'll be keeping tabs on GLD, if GLD can make that new high in to negative divergences I will take a short position for a quick trade in GLD. If I was long I'd have some trailing stop in place and be ready to at least consider getting out of the position on strength.