Gold and Silver

Our recent trade in GLD and SLV (leveraged ETFs) did well, but we pulled out of it just before a correction, the longer term charts show both have more gas in the tank and the COT (commitment of traders) report shows silver at a multi-year high in short interest with 4 of the last 5 times seeing a short squeeze on average of +40%.

Both PM's look pretty decent this morning, but I think I'd show a bit of patience and let them, as mentioned yesterday, build a little larger base, of course we'll watch the signals for timing.

Here are this morning's charts. Also our Puts entered in AAPL yesterday are in the green this morning, it may have to do with some economic data on computer sales, either way the charts didn't look right so we'll take a look at that soon too.

 The GLD longer term 3 min intraday chart shows more detail as to the positive divergence through the 4th which was the low in GLD and the day we entered 2x leveraged gold ETFs, the 9th showing short term distribution was the sale for +8% or there about. The longer term charts look good for continued gains, but I wanted to see positive divergences in 3C as GLD and SLV pulled back, that started as early as yesterday. This morning both started to move higher.

 The faster 1 min intraday chart shows a late day positive divergence sending GLD higher this morning, but as it moved higher a negative divergence set in suggesting it will consolidate more, I'd definitely like to see it consolidate a bit more before entering long again.

 The 3 min chart in SLV is exactly the same, the ETF used was AQG (2x leveraged long silver) which saw an 8% gain when closed on the 9th as the charts went short term negative suggesting a pullback. Like GLD we saw positive divergences in to the pullback yesterday and today SLV started higher.

On the faster 1 min intraday chart this move this morning, like GLD's has a small negative divergence suggesting a pullback in to the range and a bit more base building which again, I'd like to see, but these two could be close. I'll keep an eye on both. I prefer leveraged ETFs over options in this scenario just because of the probability of a better trend and less in and out with options.