Rally In Streettracks Gold Shares (NYSE: GLD) May Be Temporary Says Market Timer Frank Kollar

April 8, 2008

Shares of Streettracks Gold Shares (NYSE: GLD) are advancing from their April 1 correction lows. Is the bottom in? Is another explosive rally ahead?

Though Streettracks Gold has bounced from its correction lows, and there may even be some more upside ahead for this volatile ETF, we would be watching for another decline that takes gold, and gold stocks, to a stronger support level.

Streettracks Gold Came close to a 50% retracement of the December 2007 – March 2008 rally. A 14% decline is certainly good enough for some upside activity.

But the true gold rally lasted from August 2007 – March 2008. A longer time-frame and a steeper advance, that also needs to correct to the 50% retracement (GLD $81.98) or better yet to the Fib 61.8% retracement level (GLD $77.66).

Assuming the correction is over when a position retraces 50%, of only one-half of an advance, is more likely wishful thinking than wise technical analysis.

Take bullish positions if you are aggressive, but watch for more declines ahead, especially if Streettracks Gold reaches short term resistance at $93.34 to $95.05 a share and then reverses.

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.