UNG / GLD Update

As for UNG, this isn't a situation of "what position do we take?", it's a situation of, "If it pulls back in to the gap, shows underlying strength, then it's worth taking a look at, until it does, it's not" -at least not for a new trade.

GLD is a bit more difficult, the timeframes it is negative in are 1 and 2 min, this is very close to the negative divergences in the 1 min timeframe only that can cause a lateral consolidation as we have seen, usually when the 2 min is negative too, we get some price correction, but I do think GLD moves higher, if you like it, you might consider phasing in with a partial position here just in case this is all we get on the downside/correction side and leave room in case we do get a correction through price rather than time.

UNG

 The 1 min shows a head fake move on the initial spike up after the EIA this morning and still looks like a pullback is likely, there's no positive in the short term so no reason to buy options right now.

 The 2 min chart is the same.

 Out at 10 mins where it's more important, but not so short term, this looks good for our equity long position.

GLD

 The 1 min negative divergence can cause a lateral price pattern like this...

 However add the 2 min and usually we get a price correction

 The 3 min chart is still positive so any intraday distribution looks to be simply to keep GLD in the area or perhaps to lower it, but it's not strong enough to move the intraday 3 min chart so it's really not strong at all, more tactical stuff by the specialists it looks like than anything else.

The 5 min chart isn't hurt at all, still positive, this keeps me confident in holding the open call position in GLD.

Gold Futures look exactly the same, 1 min negative divergence while the stronger 5 min chart is very positive. I think the phased in entry, leaving room to add if price drops a bit still makes the most sense, but don't lose sight of the fact that this has ALWAYS been a speculative trade, it's not a position trade and not a trade to go swinging for the fences