(1) Been tweeting about GLD over the last few days. Wanted to show this hourly chart from this morning where GLD found support within $.01 of where it should have! Now that price level becomes the key support for a bullish continuation. In other words, if the buyer’s are in control then price should not fall back below there again.
(2) Checking in on my FB Oct15 Butterfly. Initiated the position back on Aug4 by buying Calls and then DH’d all but $900 of the original cost out of the position. The $2,150 open profit is a 238% return on the current net $900 risk. What’s even more important to me is that I only have a Delta (directional) risk of less than 100. That will reduce the drawdown should price move lower. If price instead moves higher I have the high peak profit area that comes with a Butterfly spread.
(3) Just initiated a half-size short (bearish) position in SPX using the ES chart. The 8-hour SMA is more responsive on ES since it trades 24 hours/day. The bands are rolling over providing resistance and indicating a short-term trend change from up to down. Will add other half-size if price drops below 4476 and will stop out above 4492.
Below is the risk profile for a 1-lot SPX Unbalanced Broken Wing Condor bearish trade that I’m legging into based on the ES chart (above).
