Call trade idea - GLD will rise if 10yr yield drops
For now the yield is still inversely correlated with gold price. Yield may start falling again along with markets and if so then gold will rise. I bought 14Apr 182 calls. Stop loss suggestions based on 30m chart are 180.15, 179.70, 179.
Technically, green rectangles show a possible double dip RSI test at 50. If this holds and goes back up, it is usually a strong price move indicator. Yellow dotted lines show price can hold this support around 180 and move back up to 186, though I think it can rise sharply and approach highs again. Stochastic lines show a good place to enter swing calls with low risk. %D should stay over 20.
Technically, green rectangles show a possible double dip RSI test at 50. If this holds and goes back up, it is usually a strong price move indicator. Yellow dotted lines show price can hold this support around 180 and move back up to 186, though I think it can rise sharply and approach highs again. Stochastic lines show a good place to enter swing calls with low risk. %D should stay over 20.
Comment:
Well! Powell's remarks hit GLD - and you can see it on 5m chart. I have a small position and will hold my calls for now. So far the daily candle is an inside bar so I will use Friday's low of 179.04 as my full exit.
Comment:
Yields up and GLD down... but since I have a small position and time to expiry I will hold my calls. Price may be testing recent close area and on daily chart I am still firm with my trade idea of stochastic turning up.
There are definitely some manipulations going on in the market right now. Best advice is to keep positions small, allow extra time on swings, and take profits sooner.
There are definitely some manipulations going on in the market right now. Best advice is to keep positions small, allow extra time on swings, and take profits sooner.