Divergence In StreetTRACKS Gold Shares (NYSE: GLD) Says Market Timer Frank Kollar

July 9, 2007 (FinancialWire) (By Frank Kollar)

There was an interesting divergence between the price of gold bullion and gold stocks this week. It very well may be a signal that a rally in gold is imminent.

Shares of exchange-traded fund StreetTRACKS Gold Shares (NYSE: GLD) remain near the lows of a three month correction, while shares of gold mining stocks, as tracked by the Rydex Metals Fund (RYPMX), are rallying.

In fact, RYPMX broke out of a pennant formation that has held prices in check for two months. Breakouts from such pennant formations typically have good odds in forecasting the direction of prices in coming weeks. The bullish breakout, occurring while GLD remains mired near its correction lows, could very well be telling us that gold is finally ready to take off to the upside.

A close above $65.60 in GLD would be a good indicator that a rally is starting.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds positions in index funds, ETFs and stocks that meet trending and liquidity requirements.

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.