GLD Charts

There is a level in which I would add GLD puts, we haven't seen that level, I'm not sure that we will, but I want to take advantage of the signals in GLD now and not miss an opportunity if the put position that I'd like to add doesn't pan out.

The GLD charts and if you are wondering what GDX (Gold miners) look like, the answer is I considered shorting the miners as well via long DUST, perhaps I'll add that as the second half of the GLL position, I'm not sure yet, but the answer is GDX and GDXJ are also not looking good here with GLD.

GLL is in the equity model portfolio and is a leveraged position, but I would not choose GLL for a core short position in GLD. There are some longer term charts that seem to be shaping up for GLD, we are not there yet as far as a long GLD trade, but I also don't want a core short in GLD as long as there are longer term signals that are contradictory. I'm hoping GLL will give me some decent gains quickly. I'd prefer a Put position in GLD, but I have a price level in mind that I want to see as a concession before entering a 10x leveraged position.

You will notice that the theme I have shared with you via last night's post showing Financials, Energy and Tech as well as numerous other charts including AAPL is a theme that is present in GLD as well.

The GLD charts....

 the 60 min chart in GLD has actually been quite timely, on 5/30-5/31 the hourly chart went extremely positive very quickly, I mentioned the trade idea although I didn't take it myself to my regret, that's to the far left, it was quickly sold in to price strength. GLD broke out above resistance in the $158 area and the 60 min chart went leading negative in an area that looks to be a head fake move, the last decent head fake move in GLD was in late February, it lasted (the head fake) 6 days before breaking down below the breakout level with a -5.3% move in 1 day that gained us a 215% profit in days and went on to lose over 14% the next couple of months, but the majority of the move was 1 day and a result of a head fake move.

 Here it looks clear we have another with  another leading neg. divergence on the 30 min chart at the breakout.

 The 15 min chart is leading negative and this is the reason for opening the GLL partial position now.

 The 5 min chart's trends ( as well as every other timeframe below 5 mins) went leading negative on the breakout, again the sign of a head fake move just like in February.

 Close up it looks like we can still see higher prices in GLD as there is a small resistance zone formed, that's where I'd enter additional put positions.

 As mentioned above, all timeframes are showing the same leading negative divergence on the breakout move, making this a VERY HIGH PROBABILITY head fake move, I don't skip signals like this.

 The close up 1 min intraday is also positive/leading positive so there's still hope that we get short term higher prices and a new put position can be entered.

I'd probably want to see at least $162.25 before considering entering an additional put position, which would be a move above very recent, but not very defined resistance, in essence a smaller head fake move, but one that would give a price concession, lower Put prices and lower risk levels.