Turnaround Propels Tradable Tech Funds
The heavy-volume reversal in tech
stocks Wednesday boosted the tech-focused tradable funds, but they’ve a long way
to go before they break recent downtrends.
The B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating)
gained 9.4%, the day’s sharpest gain among the exchange-traded
funds.Â
Among the basket’s largest components,
Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating) rose 15.4%, forming a bullish engulfing pattern on an
accumulation day. Commerce One
(
CMRC |
Quote |
Chart |
News |
PowerRating) rose 12.5%, PurchasePro.com
(
PPRO |
Quote |
Chart |
News |
PowerRating)
11.5%, VerticalNet
(
VERT |
Quote |
Chart |
News |
PowerRating) 6.8%, Scient
(
SCNT |
Quote |
Chart |
News |
PowerRating) 11.7%.
The Internet Infrastructure HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating)
picked up 6.4%, the Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 5.2%, the Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating)
5.2%, the Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) 4.9%, the Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating)
3.9%, the Telecom SPDR
(
TTH |
Quote |
Chart |
News |
PowerRating) 3.0%, the Nasdaq 100 Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating)
2.8%.
For more on the wash-and-rise action
in tech stocks, check out Kevin Marder’s commentary.
Gains in retail stocks
(
$RLX.X |
Quote |
Chart |
News |
PowerRating)
contributed to boost the Cyclical/Transportation SPDR
(
XLY |
Quote |
Chart |
News |
PowerRating) 1.8%.
If you’re new to exchange-traded funds,
be sure to visit TradingMarkets’ Knowledge Center,
dedicated to explaining the basics of trading and active investing in ETFs and
mutual funds. Just click on the Funds tab
near the top of this page, then click on the Knowledge
Center tab.Â
You also will find lessons on trading
exchange-traded funds in the Stocks Education area of TradingMarkets.com. In
particular, check out my three-part series on trading ETFs, starting with
Average Crossovers. I also recommend newcomers read my tutorial,
HOLDRs: Unique Opportunity And Risk.
All stocks and exchange-traded funds
are risky. In any new trade, reduce your risk by limiting your position size and
setting a protective price stop where you will sell your new buy or cover your
short in case the market turns against you. For an introduction to combining
price stops with position sizing, see my lesson,
Risky Business. For further treatment of these and related topics,
you’ll find extensive lessons in the Money
Management area of TradingMarkets’ Stocks Education section.