ETF
Streettracks Gold Shares (AMEX: GLD)
Still In Up Trend Says Market Timer Frank Kollar.
May 30, 2006 (FinancialWire) (By Frank Kollar)
Shares of exchange traded fund Streettracks Gold Shares (AMEX: GLD) have lost 9% from their May rally highs. Last week they stopped their rapid decline. Is the correction over?
Streettracks Gold Shares is a new ETF introduced in November 2004. It was created to offer investors a means of participating in the gold bullion market without the necessity of taking physical delivery of gold, and to buy and sell that participation through the trading of a security on a regulated stock exchange.
But Streettracks Gold Shares are not for those who are adversely affected by volatility. In fact, the 9% pullback in share value has not taken Streettracks Gold Shares down to even its first support level. That support is at $62.52, about 4% below last Friday’s closing price.
This means Streettracks Gold Shares are still, technically, in a bull trend. Streettracks Gold Shares would need to close decisively below $60.50 before we would declare the gold rally to be in true danger of a reversal.
At Fibtimer.com (http://www.fibtimer.com) we have already exited gold positions to cash. We await confirmation of a new sustainable advance before we will re enter any gold positions. Unless the above support levels are broken, we would expect to see the gold rally take off to the upside again.
Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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