Rally For The Nasdaq-100 Trust (NASDAQ: QQQQ) Says Market Timer Frank Kollar

February 15, 2006 (By Frank Kollar)

The exchange-traded fund Nasdaq-100 Trust (NASDAQ: QQQQ) erased early week losses Wednesday and closed at its highest level in four weeks. Is this the breakout traders have been waiting for?

The Qs are not out of the woods yet. A substantial divergence still exists between the big-caps as seen in the S&P Deposit Receipts (AMEX: SPY) that again hit new rally, and new 2007 highs, on Wednesday. The Qs have been in a trading range since mid-November 2006 with highs at $45.31 and lows at $43.16.

Before traders can look for a new rally in the Qs, the trading range must be broken to the upside. Conversely, a close below $43.16 would point to a new leg down.

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.