Over the last several weeks we have been trading GLD from the short side and successfully, the reason was the longer term 60 min chart didn't look good. Recently the 60 min chart has improved and the last trade has been from the long side at least for short term trades which seem to be the best trades right now for this market.
Yesterday I closed out the last half of the GLD long Call position and rightfully so as the negative divergence brought GLD down yesterday and today. I don't want to get too excited yet, but there is one interesting chart that is developing, if it continues to develop, we may have a new trade in GLD.
There appears to be a large bear flag in GLD now, I suspect price will bounce back and forth within this flag in the near future, the longer term outlook for GLD seems to be changing as well going from an intermediate downtrend to something more lateral and showing signs of perhaps a newly emerging base to start a new primary or Intermediate uptrend; however, for the moment, that's a different issue.
Recent improvement in the 60 min chart has me wanting to trade GLD from the long side for the time being as this chart has went from quite negative to showing pretty strong positives.
Yesterday the negative divergences suggested GLD would fall, I closed the last half of GLD Calls at a profit and it did fall and continued to fall today, the interesting thing thus far in early trade is this 1 min leading positive divergence, alone it may not be enough to do much, but if it continues to strengthen and migrate through the timeframes, it may very well provide a new entry for a new position in GLD at good prices with lower risk.
As you can see the 2 min timeframe also went negative yesterday near the highs, it is not positive yet, but it is in line. This bears watching.
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