The mfi on GLD has reversed back to an upward direction. That eliminates the confirmation on my entry, based on bb/mfi analysis, on Nov. 19. The reason for the position is disappearing. Time to mitigate. (Mitigation discussion to come in the next post.)
UNG has gapped up to 9.29. At December expiration of the covered call I sold, I would lose 0.26 in potential profit, but would still profit by 0.51 from the call and 0.03 from the stock. At this point it would cost me 0.58 to close out the covered call, so my net profit would be 0.24 if I closed everything now. At this point, the stock price has reached a resistance point. If it pierces that point, I'll most likely close the covered call and expect more profits from rising shares. If it bounces back down from resistance, then I'll hold the shares and the call until expiration.
Indicators (pps/mfi analysis):
- SPY (blue chips): A bull mode pps signal, unconfirmed by the mfi, which is dropping out of overbought territory.
- VIX (fear index): Remains in bear mode (bullish for stocks).
- TLT (Treasury long bonds): A bull mode pps signal is appearing sporadically, and it would be confimed by a rising mfi. But it may be a ghost, and TLT remains in bear mode for now unless the ghost becomes permanent at the end of the day.
- GLD (gold): Bull mode.
- EUR/USD (Dollars per Euro): Still in bull mode.
- USD/JPY (Yen per Dollar): Bull mode on the pps, never confirmed since the Nov. 12 signal, and the mfi is now dropping into oversold territory, about 2 below the price at the time of the pps signal.
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