Panic In The Streets, (NASDAQ: QQQQ) Takes Huge Hit, Says Market Timer Frank Kollar.

July 14, 2006 (Financial Wire)

The market got no friendly bounce back yesterday, as has been its habit the past couple of weeks after a loss. Indeed, thanks to escalation of hostile activities in the Middle East, investors seem to have been driven into a full-scale panic, says market timer and Fibtimer.com (http://www.fibtimer.com) editor and chief analyst Frank Kollar.

With rockets bouncing back and forth between Israel and Lebanon, each country accusing the other of acts of war, Kollar says, “Admittedly there is little good news out there. The price of oil was approaching $77 a barrel late Thursday and if this conflict grows larger, oil prices could rise dramatically. Already analysts are forecasting $5 a gallon gasoline in the near future. This would certainly have an affect on the U.S. economy and might even result in an end to interest rate hikes by the Fed if economic growth is substantially affected, though no one has mentioned that possibility yet.

We see two possibilities here. The first is for a relief rally to begin in the next several trading days. It may or may not last very long if news events continue to bombard investors, but relief could be on the way. Right now the bears are in charge, but it would not take much to launch a short covering rally. Such rallies can be explosive.

The second possibility is not so pretty. If the markets continue to sell off hard into early next week there is the potential for a climactic selling day. We are not saying a crash, but it could feel like it if you are still holding long positions.

Now is a good time to be in cash! Short traders may want to tighten up on buy stops.”

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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