- Market Analysis -

February 3, 2010 (FinancialWire) (By Frank Kollar) — Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ) declined 8.2% in the sell off that started January 20 and reaching a closing low of $42.79 on January 29. Is the selling over?

After two days of higher prices, Powershares QQQ has regained 2.0%.

Most corrections–assuming this is only a correction–play out in three waves. So far there has been only one wave down, Wave A, and the rally on Monday and Tuesday of this week has not yet reached levels that we would define as a rising Wave B.

The Powershares QQQ may have more upside ahead, but we would then be looking for another wave down, Wave C, probably to at least the $40.45 level. This is 7.3% below Tuesday’s close at $43.65.

The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy holds a position in the Powershares QQQ Trust.

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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