Mid day and a quick look at hourly bars over the past 2 weeks shows the clear momentum of the Lazy Man 5+1(GDX). Rule#1 is “Don’t Trade Against the Trend” and this chart is evidence why. The FED is selling (not buying) $66 billion in treasuries next week, which is a little less than the amount the FED bought in June with QE2. The sale comes in conjunction with Op-Ex dynamics and may create a few ripples in the trend. Meanwhile, as GDX leads the pack in momentum over the last week, TLT has formed a narrow range consolidation… a short term straddle/strangle opportunity many traders embrace (also see Tuesday’s Waiting for a Break).
