Bearish Outside Reversal Says Market Timer Frank Kollar
January 26, 2007 (FinancialWire) (By Frank Kollar)
Thursday’s steep sell off is a bearish near-term indicator for the stock market. Both the S&P 500 Index (SPX) and Nasdaq Composite Index (COMPQ) had higher highs, lower lows, and closed well below the prior trading day’s range. This calls for lower lows in coming days.
But traders should realize that the Nasdaq is still within a sideways trading range (2470-2400) that has contained prices since mid-November 2006. The SPX, on the other hand, has a bullish chart with new highs reached only yesterday.
Volatile trading is expected at market highs. The question of market direction will likely be decided by the lagging Nasdaq which will soon break out of its trading range, one way or the other.
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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