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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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  • Breakout for Shares of Dell Inc (NASDAQ: DELL)

    March 18, 2010

    Shares of Dell Inc (NASDAQ: DELL) made four consecutively lower daily highs since reaching a closing rally high back on September 16, 2009 at $16.92.

    Drawing a line between these highs, end extending it to the right side e chart; you get a declining trend resistance line. The dates of these highs are; Sept 16, 2009, Nov 18, 2009, Jan 12, 2010 and Feb 18, 2010.

    Shares also made a double bottom, reaching lows of $12.74 on Dec 9, 2009 and then again at $12.75 on Jan 29, 2010.

    This also creates a pennant formation by drawing a line between these lows and extending it to the right side of the chart.

    After the last lower rally high, Dell declined to a “higher” correction low. Then Dell advanced to the declining trend resistance line (upper declining pennant line) and traded right at that line (using closing prices) for six trading days.

    On Wednesday March 17, Dell broke out of these patterns with a bullish breakout by rising well above the declining trend resistance line (upper declining pennant line) and closing well above it.

    The new target for this advance is $15.45, a 5.9% gain. A close above $15.45 would likely result in an advance to the prior September highs up at $16.92, a 16% gain.

    Disclosure: The ( Stock Timing Strategy holds a position in Dell Inc.
    Mar 17 5:36 PM | Link | Comment!
  • RadioShack Corp (NYSE: RSH) Reverses from Important Resistance

    March 17, 2010

    Shares of RadioShack Corp (NYSE: RSH) reached rally highs last week when the retail sector rallied on March 10 after a positive jobs reports was released.

    RadioShack rose 3.4% that day, reaching $23.59 intra-day. But shares pulled back before the close and ended the day at $22.70.

    $24.00 is the critical 61.8% retracement level for the entire bear market decline for RadioShack and typically this offers a strong resistance level. When RadioShack neared this resistance it immediately reversed the rally and on Monday, March 16, closed 6.5% below the March 10 intra-day highs.

    If RadioShack is going to continue to advance, it must surpass $24.00 a share.

    Bullish traders should wait for a breakout above $24.00 for RadioShack. Should shares top this resistance level RadioShack could rise to $28.84 in short order, a 20% gain from the breakout level.

    Support is at $18.59 a share.

    Disclosure: No position
    Mar 16 6:12 PM | Link | Comment!
  • Higher Highs Ahead for Powershares QQQ Trust (NASDAQ: QQQQ)

    March 16, 2010

    Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ) are on fire. Only the small cap sector is doing better in this advancing market and there are new price targets we can watch for in coming weeks.

    The Powershares QQQ, far above their critical 61.8% retracement level, and well above the early January rally highs, are likely headed to at least the $48.25 level. This was the rally closing high achieved on August 14, 2008.

    If the Q’s can surpass $48.25, look for a continued advance to the $50.55 level, the closing highs reached on June 5, 2008. This is 7.0% above Monday’s March 15 close.

    Short term support levels are at $44.82 and then $44.18.

    Disclosure: The ( Stock Timing Strategy holds a position in the Powershares QQQ Trust.
    Mar 15 5:01 PM | Link | Comment!
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