Don't Trust Streettracks Gold Shares (NYSE: GLD) Rally Says Market Timer Frank Kollar
October 8, 2008 (FinancialWire) (By Frank Kollar)
Shares of Streettracks Gold Shares (NYSE: GLD) have been rallying over the past few days as the stock market has been selling off precipitously.
Gold Shares is obviously reacting to the fear on Wall Street, and if Gold Shares tops its prior rally highs at $90 a share, it may have a chance of continuing higher.
But we would be very careful taking bullish positions in Gold Shares at this time. While gold bullion itself has rallied, shares of gold stocks have declined.
This may have been in part because of the selloff in stocks but if this rally in gold bullion was going to continue, we would be expecting a rally in gold stocks as well. It would not be the first time gold stocks rose as the stock market fell.
The rally in Gold Shares is highly suspect
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.
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.
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