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Frank started market timing in 1982 when the Federal Reserve cut interest rates and sparked the 1980’s bull rally. Realizing that this rally could have been forecasted, he began to search for indicators which had similar forecasting ability. Within a year, his first newsletter was launched,... More
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  • Break Out For Nasdaq 100 Powershares Trust (NYSE: QQQ) 0 comments
    Apr 10, 2013 4:01 PM | about stocks: QQQ

    April 10, 2013 (by Frank Kollar)

    On two occasions in March, we wrote that we were looking for a possible breakout for the widely traded ETF, Nasdaq 100 Powershares Trust (NYSE: QQQ).

    Since early March, the Q's have traded in a well defined range, with highs around $69.00 and lows around $68.00. For a very volatile sector, the Nasdaq 100, this was a very tight range and a breakout, or breakdown, had to happen.

    The Q's have been in an uptrend since mid-November, 2012 and the sideways trading was likely to break to the upside. The rally in the S&P 500 Index also pointed to higher highs.

    Today's rally, April 10th, is a real boost for bulls, with the Q's up almost 1.5% just before the close.

    Two weeks ago we wrote: "Should QQQ close decisively above this resistance, there is again resistance at $69.68. But this will be the really important level to watch. We would be careful to enter a new position unless there is a clear bullish breakout. A bullish outside reversal day or a decisive close above $69.00 could result in rally all the way to $73.10."


    Chart Courtesy of StockCharts.com

    Today's rally was clearly a breakout. The trading range has been decisively and bullishly broken. We are looking for the Q's to reach at least $73.10 in coming days.

    The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy does have a current position in the Nasdaq 100 Powershares Trust.

    Disclosure: I am long QQQ.

    Stocks: QQQ
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