GLD Update

GLD is actually up today +0.21% and so are the Sept. $160 puts added yesterday-I suppose it's a volatility issue.

In any case, here's the GLD update.

 There are many different price patterns traders could be following, but the recent triangle is almost certainly a visible formation with yesterday's breakout, As gold has been acting as a QE sentiment indicator, and as the hopes of QE for this year fade, I've wanted to get short GLD on strength, here it is. We may have volatility today with the F_O_M_C_ minutes at 2 p.m., or it could be a catalyst for GLD, either way, I base my decisions on what I can observe, not what I can make arbitrary assumptions about.

 For short term moves, the hourly Trend Channel (which is one of the first indicators I won an award for) is showing a stop area around $158.50, needless to say, I'd like to see that broken soon.

 The 10 min Bollinger bands are tightening, it does appear GLD will make a directional move shortly, although watch out for the initial volatility, it could very well be a head fake move.

 On the 1 min 3C chart, note the intraday triangle and remember that head fakes occur on al timeframes, o we could see an upside breakout followed by a downside reversal, 3C is not even close to confirming price on this chart, it gets worse though.


 Here's the 1 min trend, not even close.

 This is where GLD gets really ugly, the 2 min chart has a lot of nice divergences that worked very well, but look at the current one, remember I've been talking about extreme divergences the last couple of days, here's one.


 On the 3 min, here's another, so we have migration confirmation of the divergence.

 Even on the 5 min, so there's good confirmation, this doesn't look like a mistake or false signal.

The 30 min chart will not confirm.

And the 60 min chart which amazingly has provided some very short term trading signals for us, is leading negative.