You can't ignore gold's move today. It violated ceiling resistance and is now testing channel resistance, look at the gold chart below. The gold ETF (GLD) is trading inside a steeper near term channel and far from channel resistance. So do you trade off GLD or $Gold spot to game resistance. Also, the silver ETF (SLV) rallied hard and broke above it's 50 day moving average and is around 17.50 ceiling resistance. So will SLV follow GLD's lead here? SLV looks like a good trade above 17.50 or below 50d/June highs (high 15s). You can't totally factor out a potential head and shoulders pattern. Everything moved higher on strong volume today. This action could be setting up for the FOMC statement on rates and forward looking language.
The whole RISK trade is being tested here. It will be interesting to see how Treasuries, the US Dollar and precious/commercial metals react tomorrow and if precious metals/S&P start to decouple.
Calls were active today in $SLV, $GLD and OptionMonster noted a leveraged bet in
ACQ (UltraSilver). Hecla ($HL) had a nice day as well. The ISEE ratio was down from yesterday however calls opened still outnumbered puts. In the near month options, GLD had high volume in the Nov $106 call and SLV in the $18 call but both were not above open interest. Implied volatility was up from yesterday. At 2:44am gold spot is at 1,082, -2.29 or -0.21% All eyes on the FOMC catalyst! E-mini's turned up this morning, along with gold. Get ready folks, this could be a wild day. предпазите, 保护自己, aizsargāt sevi....
GLD (streetTRACKS Gold Trust Shares or Gold ETF)
SLV (iShares Silver Trust or Silver ETF
