Stock Market Signals A Momentum Thrust Says Market Timing Pro Frank Kollar
August 31, 2007 (FinancialWire) (By Frank Kollar)
On Wednesday, the stock market virtually erased the previous day’s huge losses with a rally that contained a technical indicator forecasting higher highs ahead.
Advancing volume outpaced declining volume by a ration of 20 to 1 on the NYSE, and by a ratio of 9 to 1 on the Nasdaq. On days when trading volume exceeds the 9 to 1 ratio on the NYSE it is called a momentum thrust and is a rare event. Historically, having two such days within a ninety-day period forecasts a 10% to 14% market advance over the coming six months to a year.
While having one such day is bullish, watch for a second in coming weeks. It will likely mark the start of an entirely new stock market advance.
Follow your strategy and adhere to 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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