If you blinked you missed it but the SPDR Gold Shares ETF (GLD – 128.78) visited the 130’s for a brief period of time on Tuesday this past week. This was the first time a GLD price started with a 1 and 3 since the middle of June. The 130 price level was providing some short term support for GLD from the price drop that began in April. Now it appears to be a resistance level. The performance of GVZ this week – rising almost 5% along with the curve shifting upward indicates anticipation of GLD either breaking through or quickly retracting back to the 115 – 120 level. GVZ anticipates both bullish and bearish volatility so a rise in GVZ can indicate an outlook for a big and quick move up or down.
The price of oil had been on a tear for the past few weeks and reflecting the S&P 500 appears a bit tired. The United States Oil Fund (USO – 27.21) dropped a little as did OVX. The OVX curve pricing shifted in a less tha parallel fashion, but returned to a more contango like state after being stuck looking very flat and uncertain over the past couple of weeks.