Time To Sell The S&P SPDRS (AMEX: SPY)? Asks Market Timer Frank Kollar
July 25, 2007 (FinancialWire) (By Frank Kollar)
The exchange-traded fund S&P Depositary Receipts SPDRs (AMEX: SPY) took a dive on Tuesday dropping 2% on heavy volume. Is it time to sell?
The SPDRs are now about 2.6% from their all time highs. Tuesday’s 2% decline was a huge drop for a single day’s trading, but with the SPDRs only 2.6% from their highs, the bull rally remains intact.
That may not be the case if the selling continues. Watch for a close below the SPDRs previous June lows at $148.00. That would confirm that this selling has further to go and short term traders could use this level as a buy stop. But still, though the selling may continue awhile, the big picture trend remains bullish unless the SPDRs close below $144.10.
Fibtimer.com (http://www.fibtimer.com) holds a position in SPDRS in its ETF Timer Portfolio.
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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