GLD Update

Why is Gold important right now for the broader market? Because the broader market's only real positive area keeping it afloat for now is "HOPE", hope that QE3 will save the day and gold as a sentiment indicator for QE3 tells us something about the market, almost a leading indicator, in fact I have shown a chart in the last month in which gold has been shown to be a leading indicator.

As for gold itself, last year we thought gold/GLD would turn down in to at least an Intermediate downtrend, IT DID! Recently however I have been telling you how the longer term picture for gold is looking more bullish, BUT that trade is not here yet, in this update you will see we are sort of in the middle of that last thought and also looking very much like the near term expectations for the move up in price to be faded as has been thought since early this week BEFORE the move up even began.

GLD...

 Near term trade first, GLD 1 min trend is deteriorating in a flat-ish area of price.

 Close up of the 1 min chart negative on the open and in line intraday with the move down.

 The 2 min longer term trend

 The 2 min chart close up in the flat-ish trading range, going leading negative.

 3 min trend-confirmation to a leading negative


 5 min chart turned sharply leading negative today

 This is where I've been saying "Lately gold has been improving, I believe it is building a bigger base area for a larger primary trend", but within a base, there's a lot of chop up and down in a range. This 15 min chart is turning negative, however it looks more like it will just turn back in to the range, this is why I only want to trade GLD from the long side and buy on price weakness.

The 60 min chart shows the overall larger picture improvement, but also shows, GLD is not ready yet for any trades in the long term category, it looks to be building that way, but it's not there yet.

Short term it looks like it wants to turn back in to the range it is creating, that would be a negative for the market short term which would be in line with our expectations of short term action.