GLD Update

The last trade in the GLD in the options model portfolio was to close GLD July $155 puts at a 45% gain on Thursday the 28th of June last week.

For the time being, because of the 30-60 min charts and their negative positioning, I'm only interested in short term trades either short GLD or using puts. Although GLD did respond well to the bad US data as a QE sentiment indicator, GLD is again at an interesting price level in which I may consider another quick put position. Lets take a look at the charts.

 This 15 min chart of GLD shows where the last Put position in GLD as closed before it jumped higher Friday.

 To me the intraday trade look a little too obvious as a potential short, I'd like to see GLD make a new high above Friday's intraday highs in to a negative divergence, that would be an interesting entry for a new put position in GLD. I don't think a straight short is worth it from a % gain perspective, I think you need a little leverage. I think it goes without saying I would treat a trade like this as speculative for risk management purposes.

 The 60 min chart is telling me, for the time being, the trades I want to take in GLD are on the short side as it has put in some nasty negative divergences and has not recovered yet from them.

 The 1 min intraday chart of GLD today looks like GLD wants to move a bit higher, that new intraday high above Friday's highs with this chart turning negative would interest me.

 As you can see the intraday positive of the 1 min chart has not migrated to the 2 min chart which is largely in line with price, so I don't see the 1 min positive divergence as being very strong, it makes sense with the trade set up I'd considering.

 The 3 min chart is actually negative, this again fits well with the trade idea/set up. You can also see Thursday's positive divergence and the reason the puts were closed at a 47% gain.

Going out longer, the 15 min chart remains largely in line with the move down and shows a leading negative divergence today.

I'll keep watching GLD for a possible head fake move above Friday's highs, that's where I'd like to consider a GLD put position.