Quick Update and possible GLD trade

What I can tell you (this is not the exactly the same for every average as there's always some relative performance differences) is that so far while we don't have any positive divergences going in to that decline (intraday), we do have several averages that had leading negative intraday divergences before the decline and they are now in line, so in line is definitely a step up from leading negative.

It seems to be creating the chop traders hate, but that is also the potential start of the lateral zone I need to see if the issue is being accumulated or not as I expressed today before we even started a move to the downside. Remember it still is an op-ex Friday so there's still the probability of trade being effected to some degree by the pin, to what degree I don't know. We don't need a swift upside rally, that would actually be more damaging to the stability of the "W" right now, what the "W" needs is stability which means it needs accumulation and for that it needs a rather flat (or choppy lateral) range, the most boring and frustrating kind of market is actually the most significant right now, lets see if we get it.

The GLD trade possibility would need some leverage, it is likely that it would be a very short term trade, possibly even a day trade so make sure you aren't violating Regulation "T" for day trading.

Here's GLD

This is a 2 min chart leading positive, GLD has positives here out to 5 mins.

In my view, if GLD took off right here, I'm not interested, there's a better than 50/50 chance that it would come right back down to finish this little reversal area, remember that reversals are almost always a process, not an event. Judging by the preceding trend, I'd guess this "process" is about 1/3 to 50% done. If we get a shakeout/run of the stops below the trendline, then we have a much higher probability trade with a better profit profile as well as risk/reward profile.

I'd like to see GLD come down toward the trend line, 3C to keep moving up and then a run on the stops with 3C going even more positive and then I'm interested in a GLD June $134 (monthly) call.

Soon we'll need to start looking at July calls.