Closing In On New SPYDRs (AMEX: SPY) High Says Market Timer Frank Kollar
May 4, 2007
The stock market appears almost unstoppable of late. The Dow Industrials (DJIA) are at new all-time highs. The S&P 500 Index (SPX) is only 20 points away from all-time highs. What happens next?
Clearly big cap issues are leading the charge. They can be traded with the S&P Deposit Receipts (AMEX: SPY). Last week we said a correction was imminent and Monday we had a huge sell-off. But instead of continuing lower we reversed and are again reaching new highs almost daily.
The market has become like a freight train. You can put on the brakes but the train will continue quite some time before it stops. Don’t bet against this advance until we have a confirmed reversal. There is always a reversal ahead, but in such a strong momentum driven market, it is impossible to know when it will finally occur.
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.
Go to previous Trading Notes.
Note: These "Trading Notes" are short term in nature. They may or may not reflect the same position as current subscriber reports which typically have longer time frames.
© Copyright 1996-2007, Kollar Market Analytics, Inc., All Rights Reserved.
FibTimer reports may not be redistributed without permission. These Trading Notes however may be distributed 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. |
