The Yellow Brick Crossroads

I have a preferred scenario in the SPDR Gold Shares (GLD), but that does not mean it will play out. I can be wrong, but the good news is that my risk is defined by the Fibonacci numbers and ratios.

I was looking for a possible low to develop around Dec. 19. We are at an important crossroads in this market since then. GLD ended up making a low on Dec. 20, just $0.10 above a key Fibonacci price cluster zone at the 157.54-158.29 area (actual low 158.39). This price cluster developed within the context of a two-step pattern. The cluster zone included a 0.618 retracement of the May 30 low to Oct. 4 high, a 100% projection of the first swing down of the zigzag pattern (Oct. 4 high to the Nov. 2 low projected from the Nov. 23 high) along with a 1.618 extension of the Nov. 2 low to the Nov. 23 high....261 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.