Nasdaq-100 Trust (NASDAQ: QQQQ) On The Precipice, Says Market Timer Frank Kollar.
May 31, 2006 (FinancialWire) (By Frank Kollar)
The exchange-traded fund Nasdaq-100 Trust (NASDAQ: QQQQ) took a huge hit Tuesday after a two-day bounce from critical support last week. Traders returned after the three day holiday weekend, apparently unconvinced by the rally from support, and sold with a vengeance. The Nasdaq-100 Trust closed back below critical support.
How many times can the market rally back from these sharp declines? If our read of the current chart of the Q’s is right, we may have seen the last one. Tuesday’s close below $ 38.72 calls for a decline to the next support level at the October 2005 lows. That means the Nasdaq-100 Trust can easily drop to $37.48 before another support level will try to break the fall.
Should the Q’s close decisively below $37.48, a good part of the gains achieved in 2005 would be in jeopardy. Right now, suffice to say, the Q’s are on the precipice. The odds now favor lower lows over the coming days and weeks. The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy remains bearish on the Q’s, and in a short position .
Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.
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.
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.
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