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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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  • Buy Signal Still In Effect for U.S. Markets

    April 30, 2010

    Last Thursday, April 22, both the Nasdaq 100 Index (NDX)and its tracking ETF the Powershares QQQ Trust (NASDAQ: QQQQ) had a strong bullish outside reversal day signaling there was still more upside ahead, even after the already strong gains achieved since the late January to early February correction.

    On Tuesday of this week global markets as well as U.S. markets had a meltdown, with the NDX and the Q’s both losing 2.1% in a single day, after debt-ratings were lowered for Greece and Portugal. Spain joined the party the following day.

    But surprise, on Wednesday the U.S. markets did not follow-through to the downside and on Thursday, the stock market exploded out of the gate and erased almost all the early week losses.

    When the stock market is in the midst of a momentum run, never try to pick a top. There is no way to do so. Bad news is usually ignored or has a limited effect on prices.

    Both the NDX and the Q’s do still have a test ahead. Both remain just below important resistance. For the NDX it is at 2055.00 and for the Q’s it is at $50.61.

    These are the bear market highs achieved on June 5, 2008 when, after a huge three month long bear market rally, the stock market rolled over and both the NDX and QQQQ declined some 50% to the bear market bottom in November 2008.

    Only a fraction of a percent ahead, a solid close above these levels would be a breakout and add more fuel to the momentum run.

    Our target for the NDX remains at 2055 and for the Q’s at $50.61. A close above these levels would result in new higher targets being posted.

    Disclosure: The ( ETF Timing Strategy has a position in the Powershares QQQ Trust.
    Apr 29 5:09 PM | Link | Comment!
  • Breakout for DTE Energy Co (NYSE: DTE)

    April 29, 2010

    Shares of DTE Energy Co (NYSE: DTE) have risen 104% since their March 2009 bear market lows. How much higher can this stock go?

    There are higher highs ahead after DTE Energy broke above the Fib 78.6% retracement level for the entire bear market decline on Wednesday, April 28. Shares jumped a full 3% on this date.

    DTE Energy has been strong for awhile, closing above the Fib 61.8% retracement level back in early December, declining from this resistance level for two months and then again surpassing this level with a great deal of strength on February 18.

    The final resistance level for DTE Energy, the 78.6% retracement level at $48.04, has now been surpassed and this stock should be on track to make a run for its prior 2007 highs at $54.00 a share.

    This is 12.5% above Wednesday’s close.

    Disclosure: The ( Stock Timing Strategy holds a position in DTE Energy.
    Apr 28 5:21 PM | Link | Comment!
  • Powershares QQQ Trust (NASDAQ: QQQQ) Reverses

    April 28, 2010

    Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ) reached a strong resistance level at $50.61 which was the bear market rally high reached on June 5, 2008. This was the high point in the most powerful bear market rally of 2008 and as such it marks a strong level of resistance.

    On Tuesday, April 27, stock markets around the world, as well as in the United States, took a tumble. The Q’s had closed right at $50.41 the day before, and took a 2% decline on Tuesday. Of course the entire market declined, but the Q’s had reached this important resistance level four days previously and had so far been unable to surpass it.

    For the Q’s resistance has for now turned back this advance.

    There is initial support at $48.57, which was the bear market rally high reached on August 15, 2008. The Q’s surpassed this level three weeks ago and should find buyers there.

    The 50-day moving average is just below this at $47.92 and should also offer support. However, should the Q’s close below $47.92, they could easily drop to the $46.00 level in coming weeks. This was the January 2010 high reached before a significant correction began.

    Disclosure: The ( ETF Timing Strategy holds a position in the Powershares QQQ Trust.
    Apr 27 4:56 PM | Link | Comment!
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