Bullish Reversal For Ishares Russell 2000 (AMEX: IWM) Hits A Wall Says Market Timer Frank Kollar
August 15, 2007 (FinancialWire) (By Frank Kollar)
Shares of exchange-traded fund Ishares Russell 2000 (AMEX: IWM) reached strong Fib support last week at $73.57 and reversed to the upside. When a decline reverses right at a known Fib support level it is very bullish.
But after Ishares Russell 2000 rallied for a couple of days, the advance ran into a strong headwind and on Monday and Tuesday of this week shares reversed hard. We would head for the sidelines on this one. Short trades are risky as Ishares Russell 2000 is still above support but long trades are taking a hit. Cash is the place to be.
Wait in cash until we have a new breakout for Ishares Russell 2000 above $80 a share, or a breakdown with a close below support at $73.75. That will tell us where shares are headed over the coming days or weeks.
Fibtimer.com (http://www.fibtimer.com) also holds a position in Ishares Russell 2000 in its ETF Timer Portfolio.
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.
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