Deja-Vue All Over Again Says Market Timer Frank Kollar
November 2, 2007 (FinancialWire) (By Frank Kollar)
360 Dow points here, 360 Dow points there. Pretty soon you are talking real declines. The Dow Jones Industrials (DJIA) took another jaw-dropping decline on Thursday after Citigroup (NYSE: C) sold off 6.9% on concerns that the bank may soon have to cut its dividend due to losses from bad home loans.
This speculation spread to other bank stocks that also sold off; American Express (NYSE: AXP) down 4.2%, AIG (NYSE: AIG) off 6.1% and JP Morgan (NYSE JPM) off 5.7%.
What happens next? There will likely be follow-through after such a large one-day decline, but just as the last big Dow hit did not last, neither is this one likely to. The advance in stocks, as volatile as it is, is going to be at considerably higher highs by early 2008.
Watch critical support at DJIA 13400 for clues as to how long this correction will last. If DJIA 13400 holds, we should see a quick reversal.
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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