Technology SPDR (AMEX: XLK) Nearing New Highs Says Market Timer Frank Kollar

October 10, 2006 (FinancialWire) (By Frank Kollar)

Shares of the exchange-traded fund Technology SPDR (AMEX: XLK) are a fraction way from making new multi-year highs after closing at $22.36 on Monday. A close above $22.54 will place Technology SPDRs at highs not seen since January 2002. What happens after new highs are reached? Will shares reverse or continue to advance?

Technology SPDRs , which allows investors to trade a basket of technology stocks including such heavily traded one as: Microsoft Corp (NASDAQ: MSFT), Cisco Systems (NASDAQ: CSCO) and International Business Machines (NYSE: IBM), need to make a decisive close above $22.54. If they do, we expect them to reach $23.55 in coming weeks and possibly $24.83 after that. But if this volatile ETF does not break out soon, we could see a reversal with a corrective decline lasting several weeks.

Fibtimer.com (http://www.fibtimer.com) holds a position in Technology SPDRs in its ETF Timer Portfolio.

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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