This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Breakout Stocks: SPDR Gold Trust, Netflix

By Roberto Pedone

BALTIMORE ( Stockpickr) -- Is gold about to break out to new highs? That's what many investors are wondering as the action in the yellow metal starts to heat up as we approach a very strong seasonable period for this commodity.

September has often times marked the seasonal sweet spot for gold. Since 1971, gold has seen an average gain of 3% in September. Even better, the gold mining stocks as measured by the AMEX Gold BUGS Index (HUI) has risen an average of 8% in the month of September since the official launch of the index in 1996.

Market players would be well served to monitor some of the top gold ETFs for breakout action as we move closer towards September. Two that I would recommended are the SPDR Gold Trust (GOLD) and the Market Vectors Gold Miners ETF (GDX).

The GLD mirrors the actual price of gold bullion and this ETF will breakout above $123.50 a share. With the ETF currently trading around $119, investors could get in now and anticipate the breakout. Just remember to have stops in place in case it doesn't happen.

For the GDX, the near-term breakout will happen if this ETF can get above $55 a share. The all-time high on GDX sits at around $56.25, so a true breakout to new highs won't happen until that price is breached to the upside. Again, with this ETF currently trading at around $50.50 a share, you could look to buy it now and anticipate another bullish September for gold.

A breakout occurs when a stock makes a move through a significant level of support or resistance, which is usually followed by heavy volume and increased volatility. Wall Street players love to see an upside breakout because it demonstrates strength in the underlying asset as the price breaks above a level of previous resistance. An upside breakout can also take a stock to new highs, which will generate a lot of interest as the stock shows up on sophisticated software that scans for this type of action.

Here 's a look at a number of stocks that are already breaking out, or could be setting up to become solid breakout candidates.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
GDX $25.39 -1.70%
GLD $123.24 -0.33%
ATHN $132.66 -0.48%
DXCM $65.10 1.12%
GOL $7.21 2.12%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs