Suspect Rally For S&P SPDRS (AMEX: SPY) & Powershares QQQ (NASDAQ: QQQQ) Says Market Timer Frank Kollar
August 7, 2007 (FinancialWire) (By Frank Kollar)
The S&P Depositary Receipts SPDRs (AMEX: SPY) and Powershares QQQ (NASDAQ: QQQQ) surged Monday tacking on 2% for the SPY and 1% for the Qs. Is this the correction bottom?
Watching today’s rally unfold we could not help but notice some disturbing indicators. Even while the Dow closed just short of a 300-point gain, The NYSE had 1703 advancing shares to 1623 declining shares. The Nasdaq had 1406 advancing shares to 1655 declining. Negative breadth during a huge rally is bearish!
Plus, volume was the second lowest this summer, excluding the July 4 th holidays.
This is likely NOT the time to be taking bullish positions.
Fibtimer.com (http://www.fibtimer.com) holds a position in SPY as well as QQQQ 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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