Wall Street Panic
July 27, 2007 (FinancialWire) (By Frank Kollar)
Is this the end of the rally? Huge declines in the Dow Jones Industrials (DJIA), down 311.50 at the close on Thursday, were in the headlines everywhere. But is this really the beginning of the end?
We think not. Note that the Nasdaq 100 Index (NDX), composed of the top 100 technology companies in the country, rebounded from intra-day losses and closed down just over 1%. In fact the Powershares Qs (NASDAQ QQQQ) only closed down a fraction of a percent (.85% to be exact).
True, there was a great deal of panic selling on Thursday. In fact the CBOE Volatility Index (VIX) closed at highs not seen since back in June, 2006, which would have been a great time to buy stocks considering the year long rally that started shortly after.
Follow your strategy and adhere to your money management rules to protect capital. If you do not have money management rules, give FibTimer.com (http://www.fibtimer.com) a call. The surest way to lose money in the stock market is to trade without a plan.
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 Press Releases & 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. |
