Where to Next for Powershares QQQ Trust (NASDAQ: QQQQ)? Asks Market Timer Frank Kollar
May 5, 2010 (FinancialWire) (By Frank Kollar)
Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ)
lost 3% on heavy volume on Tuesday, May 4 as U.S. and global
markets sold off. What’s next for this volatile and
widely traded ETF?
The Q’s stopped at a strong resistance level two
weeks ago. This was at the bear market rally high of $50.61
reached on June 5, 2008. $50.61 turned the stock market
and the Q’s lower then, and have done so again now.
The Q’s closed just above their 50-day moving average;
a level watched by many traders as short term support.
Below this, should the Q’s continue lower, are support
levels at $45.33 and then $44.57. This would exceed a 10%
correction so if we are on the cusp of a normal 10% correction,
we could see buyers come in before either of these supports
are reached.
The Fibtimer.com (http://www.fibtimer.com)
ETF Timing Strategy holds a position in the Powershares
QQQ Trust.
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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but there is no guarantee that future results will be profitable. |
