Sink Or Swim Time For The Stock Market Says Market Timer Frank Kollar
March 23, 2007
Wednesday's rally was a very bullish accumulation day, and we must say the charts are looking quite positive for both the Nasdaq-100 Trust (NASDAQ: QQQQ) and S&P Deposit Receipts (NYSE: SPY). But before you jump into the water with both feet, a couple more events are needed.
Last week we wrote that there was a possible double bottom on the Qs, a bullish VIX, a possible completed 3 Wave decline in the SPDRs. Multiple other indicators were turning bullish and we were looking for a rally. We have had the rally, but could this entire decline, occurring in only a few violent trading days, be truly over in just three weeks? It seems unlikely. Look for two more clues, a close above $44.80 in the Qs and a close above $144.35 in the SPDRs. These levels mark the Fib 78.6% retracement for the entire sell-off. If the markets can top them, we will be looking for a run at the rally highs and potential new highs.
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.
© Copyright 1996-2007, Kollar Market Analytics, Inc., All Rights Reserved.
FibTimer reports may not be redistributed without permission.
Disclaimer: The financial markets are risky. Investing is risky. Past performance
does not guarantee future performance. The foregoing has been prepared solely
for informational purposes and is not a solicitation, or an offer to buy or sell
any security. Opinions are based on historical research and data believed reliable,
but there is no guarantee that future results will be profitable. |
