1 1/2 Steps Back
So much for Thursday’s bounce. The
tech-focused
exchange-traded funds slumped anew Friday as well as the bellwether financials.
If you trade the intermediate term,
don’t get caught up in trying to catch the bottom. You don’t need to catch the
bottom. And you shouldn’t assume the very high risk trying to do so. Bottoming
is a process, not a day. If you get accumulation days that take the market off
the lows, along with a proliferation of base-building stocks, then you can wager
on a nascent rally. If you’re right, a true rally will have plenty of road left
to carry your positions. Until you see those signs, regard every reversal day
off the lows as a potential bull trap.
The Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) lost
10.2%, the day’s sharpest lost among the ETFs. Among its components, Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating)
dived 23.1%. Tellabs
(
TLAB |
Quote |
Chart |
News |
PowerRating) 17.2%, Lucent
(
LU |
Quote |
Chart |
News |
PowerRating) 12.3%, Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating)
9.3%. For my take on Tellab’s chart, see my Trading
The News commentary.
The Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating)
shed 6.6%, the Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) 6.4%, the B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating)
6.3%, the Dow Jones Technology iShares
(
IYW |
Quote |
Chart |
News |
PowerRating) 5.9%, Dow Jones Internet
iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) 4.9%, the Nasdaq 100 Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) 4.7%, the
Technology SPDR
(
XLK |
Quote |
Chart |
News |
PowerRating) 4.1%, Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 4.1%.
The Dow Jones Financial Services
iShares
(
IYG |
Quote |
Chart |
News |
PowerRating) declined 3.0%, the Dow Jones Financial iShares
(
IYF |
Quote |
Chart |
News |
PowerRating) 2.7%,
the Financial SPDR
(
XLF |
Quote |
Chart |
News |
PowerRating) 2.3%, the Regional Banking HOLDR
(
RKH |
Quote |
Chart |
News |
PowerRating) 2.1%.
Talk
about it at TradingMarkets World