Bearish Indicators For Streettracks Gold Shares (NYSE: GLD) Says Market Timer Frank Kollar
February 13, 2008 (FinancialWire) (By Frank Kollar)
Shares of Streettracks Gold Shares (NYSE: GLD) have again taken a hit and this time the signals are turning ominous for this volatile ETF.
Back in early January, gold stocks hit rally highs when Gold Shares reached the $90 level. In the end of January, when Gold Shares hit new highs at about $92.50, gold stocks hit lower highs than during their previous early January rally. Now Gold Shares have again failed, this time at the $91 level and gold stocks have failed to reach even the late January level.
This sets up three lower highs for gold stocks since the start of 2008. That is in marked contrast to the rally highs of the Gold Shares ETF. This current failure at the $91 level also has the ominous look of a bearish Head and Shoulders top for Gold Shares.
As long as Gold Shares stays above $87.30 a share, they remain in bullish territory, but a close below $87.30 would likely result in steep declines. Already, the chart of Gold Shares is looking like a top is in place. Bullish gold traders should keep tight stops on this heavily traded ETF.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy may have a position in Streettracks Gold Shares .
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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