Wednesday was another FOMC day. We opened and sold off without much conviction, rallied up to last month’s minutes, time but in the end we just rallied to close higher. Even the selloff in the oil couldn’t really press the downside for long and closed near the highs and up for the fifth day in a row. It’s a little bit lower tonight but after a $7.50 rally that’s to be expected.
The gold rebounded but fell hard after the Fed minutes release only to rally again and closed mid-range. We bought the GLD 8/127 calls on Tuesday and while they did rally I am keeping a close eye on the position. I think the action over the last 2 weeks has been quite constructive and any close above the highs around $1,370 gives us a shot at $1,400. The problem is that our position expires Friday and I’ll have to roll it forward. We have a good start tonight with the futures trading up about $11 @ $1,356 (10PM). CAM
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