TimerFrank's  Instablog

Send Message
Frank started market timing in 1982 when the Federal Reserve cut interest rates and sparked the 1980’s bull rally. Realizing that this rally could have been forecasted, he began to search for indicators which had similar forecasting ability. Within a year, his first newsletter was launched,... More
My blog:
Market Timing Pro
  • Support Broken For SPDR Gold Shares (NYSE: GLD) 0 comments
    Dec 19, 2012 2:59 PM | about stocks: GLD

    December 20, 2012 (By Frank Kollar)

    Important support for the widely traded ETF SPDR Gold Shares (NYSE: GLD) was broken in Tuesday's steep sell off.

    On November 2, 2012 Gold Shares closed at a correction low of $162.60. On this most recent Tuesday, December 18th, Gold Shares closed at $162.08 after trading as low as $160.90 intra-day.

    On Wednesday, December 19th, Gold Shares lost ground again, trading at $161.60 as this analysis was being written and hour before the close.

    As it is, this ETF is one of the most volatile trading vehicle with huge intra day swings and sudden losses and gains that make mockery of trading stops.

    Chart Courtesy of StockCharts.com

    We would now own the ETF nor any gold bullion or gold stocks during this sell off which actually appears to be gaining steam. We never recommend short positions in Gold Shares because of the volatility, but those with the resources might consider one here with a buy stop around $167.00.

    The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy does not have a position in Gold Shares.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: GLD
Back To TimerFrank's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.