Gold Reversal

SPY is at an all time high right now and is in the looks of a pullback right now. No sign of anything major but due for a weeklong pullback at the very least. As we know Gold does not like to follow the rest of the market. The spot price of gold hit $1775 just last week and reversed upward off of it. Also, gold has been declining since August but has been staying in a range since November. I predict Gold price will inch upwards over the next 1-2 weeks which is why I entered into a put credit spread on $GLD yesterday. A 176.5/170.5 spread expiring 2/19. I believe $GLD will stay above $170.5 by market close next Friday. Its to speculative to say whether the price will move upward for longer than 2 weeks, but I am confident in my 1-2 week prediction.

-TJ Brescia

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