Bullish Reversal Says Market Timer Frank Kollar

November 14, 2008 (FinancialWire) (By Frank Kollar)

After a week of devastating losses, the stock market turned on a dime Thursday, November 13, and rallied some 900 Dow points from the intra-day lows, to close with a gain of 552.59.

This creates a technical pattern called an outside bullish reversal. When the market trades below the lows of the previous day, but then rallies and closes at its highs and above the highs of the previous day.

It occurs when the market finally runs out of sellers, and there is no one left to sell shares down, so they rise on high volume. It marks a change in sentiment and Thursday’s rally was also across all sectors.

Considering the global economic crisis that continues to cloud the future, it is not easy to predict a bottom is in for the bear, but certainly we should see several weeks of gains, though still with a high degree of volatility.

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.

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.

Go to previous Press Releases & Trading Notes.