GLD – A Counter Trend Setup

Yes GLD ($119.53, up $1.44) is in a downtrend on the daily charts, all the moving averages support the bears etc.  I will be identifying areas for possible shorts on a bit more of a bounce.

Every once in a while however….I do give you parameters for a counter trend trade and this will be one of those times.  Note that in GLD on the weekly chart we are holding above key support and I also want you to notice the TIME symmetry between the swings I’ve marked up on this chart.  Besides this time symmetry I did also have some daily time cycles at the most recent low.

CB glddaily

CB gldweekly

Now I don’t have a GOOD buy trigger in GLD except maybe on some minor charts, but I have to think that if the 7/1 high is taken out (~$122) we might be in for a tradable short squeeze.

If you want to consider a counter trend entry in GLD before that….Maybe a relatively low risk options strategy would be in order……….  The July (regular July expiration 7/21) 119 – 123 call vertical spread for ~$1.65 gives you time (10 trading days) and good risk/reward ($2.35 potential profit).