GLD, Gold's ETF appears to in a small reversal pattern. Buying a Put Option may be a good stock strategy for today.
XLF & FAS did not manifest yesterday, so the FAS trade did not come about. It is always good to confirm, isn't it!
SPDR Gold Shares (NYSEARCA:GLD) this is Gold's ETF
The investment seeks to replicate the performance, net of expenses, of the price of gold bullion. The trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in
connection with redemption of baskets. The gold held by the trust will only be sold on an as-needed basis to pay trust expenses, in the event the trust terminates and liquidates its assets, or as otherwise required by law or regulation.
The last three candlesticks formed a Bearish Evening Star Pattern . This is a bearish reversal pattern that marks a potential change in trend. The market is already in an uptrend when the white body appears which further suggests the bullish nature of the market. Then a small body appears showing the diminishing capacity of the longs. The strong black real body of the third day is a proof that the bears have taken over. An ideal Bearish Evening Star Pattern has a gap before and after the middle real body. The second gap is rare, but lack of it does not take away from the power of this formation.
Here's a perfect little formation for us. We started to move up but it looks like this formation which is highly reliable marks a continued downward movement for GLD. This may be reinforced by the fact that yesterday it mirrored the SPY. So, if it continues, the SPY is giving sell signals today and this just reinforces that GLD could be a good PUT Option play today.
There is one more factor to consider also if we look at the 60 minute chart from yesterday. What appears to be a strong resistance line toward the end of the day could not be broken. I think this is very important as we move into this day.
Disclosure: GLD Short