This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

ETF: Set Up for Golden Summer

Stocks in this article: GLD

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( The FRED Report) -- In Thursday's FRED Report conference call ( listen in here), one of the biggest questions was on the precious metals markets. We think that commodities in general (and gold in particular!) are bottoming, and could have a significant summer rally.

We show the daily chart of GLD (SPDR Gold Shares) below.  The daily stochastic is up and suggesting higher prices. Not shown is our accumulation model, which also suggests higher prices are in store.

At the same time, a look at the weekly GLD chart suggests an inverse Head and Shoulders (a bottoming formation) is being formed. Notice how the stochastic is moving down, while price is, so far, remaining above prior lows. This formation will remain valid unless 154 is broken. It also suggests some more consolidation, choppy up and down trading, is in the cards. Should this occur, the stochastic on the weekly will come down into the buy zone, and set up the next run to the upside.

One of the interesting things about the respective positions of the daily and weekly charts is that the mid-150's on GLD is important in both cases. In fact, the daily chart could stage a temporary false breakdown, while the weekly pattern remains alive. Indeed, we think that this is a likely scenario -- we would not consider selling GLD unless 154 is breached.

Bullish sentiment on gold is falling, and several clients are suggesting that the up move in the metal is over, although the long-term uptrend remains intact. In turn, we believe GLD should be bought by speculative accounts, as the weekly pattern is clear enough, and the risk (a move below 154) is fairly obvious. While this is not for the faint of heart, it could be an interesting trade as long as readers manage the risk with stops.

At the time of publication Fred Meissner had no position in the ETFs mentioned above.


This article does not constitute a solicitation or offer to buy or sell securities.  Interested parties are advised to contact the entity with which they deal if they desire further information.  No representation is being made that the information herein is accurate or complete.  Any opinions or estimates contained in this communication represent the judgment of Fredco Holdings, Inc. at this time and are subject to change without notice.  Fredco Holdings, Inc, its employees, officers, directors, principals, agents, affiliates or advisers may from time to time provide recommendations with respect to, acquire, short sell, hold or sell a position in, the securities or instruments named or described in any report or information being provided herein, provided however that no buying or selling activity will be taken with respect to a security referenced in a report by such parties within three days of such report's publication.  The information contained herein was prepared by The FRED Report, which is solely responsible for the contents of this report.   

More detailed information, including actionable alerts, is available to Fred Report subscribers or 30 day free trial at .

Fred Meissner is founder and publisher of  The Fred Report. Fred is a CMT and past President of the Market Technicians Association (MTA) . He recently left Merrill Lynch's Market Analysis Department and Sector Strategy Department to form The Fred Report.  A detailed bio is here:  Fred Meissner .

Fred Meissner is founder and publisher of The Fred Report. Fred is a CMT and past President of the Market Technicians Association (MTA). He recently left Merrill Lynch's Market Analysis Department and Sector Strategy Department to form The Fred Report. A detailed bio is here:Fred Meissner.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs