Securities Research Services

Friday, January 12, 2007

There Remains Money to be Made in this Hot Market

Tech continues to rally as the QQQQ broke outside its upper Bollinger band. The QQQQ has major resistance at $46 and is likely to get there before this rally is over. In the meantime though, the extreme move represented by the move above the upper Bollinger may cause pause in the sector for a few days giving the other indices time to catch up.

At least that is the healthy expectation.

Tech could continue to rally higher, but then stocks would be on much shakier ground and a larger correction may loom. But let's worry about that when and if it becomes an issue. Right now there is still profit to be made from this rally and focusing on a potential future correction will keep you from profiting now when the market is hot.

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