Monday, August 22, 2011 6:09:28 PM
GLD 6-Month Daily
Chart Pattern: Bump & Run
Support: Green/Blue/Orange Trendline
Strategy: Ratcheted puts with hedged calls
Noteworthy is the acute divergence in the trendline from approximately 30 degrees to a radical 85 degree angle. Other noteable divergence is seen in the relationship between the StochRSI and volume (heavy volume/weak RSI) demonstrating market support for price is waning. This is confirmed both by the ADX/+DI and CMF. A conservative play would be puts with a 10% hedged call, selling the puts at support lines if price stalls occur, re-taking new put positions on violations of support. Hedged calls could be taken at stall points for insurance against bad news in the market.
Chart Pattern: Bump & Run
Support: Green/Blue/Orange Trendline
Strategy: Ratcheted puts with hedged calls
Noteworthy is the acute divergence in the trendline from approximately 30 degrees to a radical 85 degree angle. Other noteable divergence is seen in the relationship between the StochRSI and volume (heavy volume/weak RSI) demonstrating market support for price is waning. This is confirmed both by the ADX/+DI and CMF. A conservative play would be puts with a 10% hedged call, selling the puts at support lines if price stalls occur, re-taking new put positions on violations of support. Hedged calls could be taken at stall points for insurance against bad news in the market.
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