Winding Down OPEX

Alright ladies and leeches – Wednesday is usually the high day of OPEX week, so don’t expect anything dramatic to go down tomorrow or Friday as the last two days are traditionally rather slow and painful. Of course – you never know… 😉

Wave count leaves too many options open at this point but it’s negligible anyway as we have not yet arrived at a point where I would feel comfortable trading either direction. I personally think that we’ll probably need a gap to bust much lower as there is a lot of support underneath leading to my projected targets of 830 – 820.

But there’s also a good chance we’re going to bust higher and complete Intermediate (A) of Primary {1} – a first sign of that to happen would be a breach of the April 14 high of 864.31. Note how we again completed the day at one of my diagonal resistance lines. It’s nice to see at least some order in our universe – when the wave count leaves too many options open good old TA comes to the rescue 😉

So far 900 has presented an ‘access denied’ note to our favorite precious metal. We are now approaching a convergence of that level with the diagonal resistance line going back about one year. If we breach that level then I would probably get a bit nervous. If you go back two posts – I have also shown a short term GLD chart that shows some interesting resistance lines. Bottom line is that this looks like a consolidation and might drag out a few more days but thus far there does not appear to be much momentum behind it.

Tomorrow we’ll play some interesting option spread strategies – should be fun. I am curious as to how the HOG calendar will pan out – anyone any news on that one?

Cheers,

Mole