If I could add to GLD puts right now I probably would. There's a USO equity short open as well as the GLD June 19th $117 puts which I'll leave in place. I expected both gold and oil to react negatively to the move higher in the $USD, considering I like both gold and oil longer term, it's also interesting to note that the $USD move up is considered counter trend meaning it should come back down to a new lower low. Beyond carry trade implications, if we just follow the $USD/Gold/Oil correlation, that would set up our nice longer term trend trades in both gold and oil (long).
For now though we are dealing with the near term trade management on the $USD break higher. It will be interesting to see how this effects the market as price action is quite strange looking and the rotational issue mentioned in the previous posts.
$USDX is finally breaking out above the short term :"W" counter trend bounce base.
GLD 15 min leading negative divergence to start with. Now with the $USD correlation pressure...
The 1 min intraday has gone south in GLD pretty fast.
As has the 2 min meaning migration of the intraday divergence and pretty extreme.
This is the 3 min chart. Note there's a lot of 3 min charts, it seems there's a specific times event which I'm guessing is just the SPX break above the large ascending triangle range. We should continue to see migration of the divergence (strengthening) continue to longer timeframes, there's a big difference between a 2 and 3 min chart vs a 3 and 5 min chart.
USO intraday chart/volume pretty ugly for oil here.
The USO 15 min chart (as well as 60 min) telling us the path of highest probabilities near term is down.
The 1 min intraday USO chart. Again the intraday negatives that started at 1 min today are all around the 3 mi mark.
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