Sideways Trading For S&P Deposit Receipts, Says Market Timer Frank Kollar
With highs at about $93.50 a share and lows at $80.50 a share, the SPY has been unable to mount a substantial trend for over three months in either direction. Some might say this is good as a bottom is being formed after the severe bear market lows reached in November.
But at the same time, bear market lows are usually followed by a strong rally after sellers exhaust themselves on the downside. Certainly that has not been the case this time.
If SPY does not soon mount a rally that closes above $93.50 a share, we will be looking for a new selloff that breaks the lows of this trading range and tests the November 20 lows at $75.45.
Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.
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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