S&P 500 SPYDRS (NYSE: SPY) and Powershares QQQ (NASDAQ: QQQQ) Close Sharply Lower Says Market Timer Frank Kollar
August 18, 2009 (FinancialWire) (By Frank Kollar)
Both the S&P 500 SPYDRS (NYSE: SPY) and Powershares QQQ (NASDAQ: QQQQ) took a substantial hit on Monday, August 17. The SPY dropped 2.6% and the QQQQs lost 3%.
When trading the financial markets, you must decide ahead of time what time frame you will be following in your trading. Typically at Fibtimer, in trading trends, we take positions that last several months and even longer.
In Monday’s selloff, day traders would have taken morning positions and would be out before the close. Swing traders might be taking bearish positions and expecting them to last several days at most.
Both the Nasdaq 100 Index and S&P 500 Index closed at new 2009 highs last Thursday. Any trader with a time frame longer than several weeks is going to still be in bullish positions for either of these ETFs and certainly for the major indexes.
The purpose of having a trading strategy is to know ahead of time what you will do in any situation. For trend traders, there is no change yet needed. The trend remains up and two bad days does not reverse five months of upside.
The http://www.fibtimer.com ETF Strategy has a position in the S&P 500 SPYDRS and the Powershares QQQ.
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.
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