Lower Prices Ahead For Ishares Russell 2000 (AMEX: IWM) Says Market Timer Frank Kollar
August 22, 2007 (FinancialWire) (By Frank Kollar)
Shares of exchange-traded fund Ishares Russell 2000 (AMEX: IWM) rallied off what appeared to be a correction bottom last Friday. But the rally ran out of steam at $80.00 right where two previous rallies failed.
IWM looks like it may have lower prices ahead. The $80.00 level is the 50% retracement of the entire July-August correction to date. Having been unable to surpass it three times is more likely to result in weakness over coming days than strength, with potential lows at $75.84 and $76.65 support levels.
If we do have a breakout in IWM above $80 a share, it will be a good sell stop for a bullish trade. But until we see that level, traders should tread carefully with shares of IWM.
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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