Another Tech Bath
More of the same.Â
The tech-focused exchange-traded
funds Friday took the brunt of the selling among the ETFs. The B2B Internet
HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) led the way, dropping 5.7% and marking an all-time low.
The basket of stocks was pressured
lower by selling in component Commerce One
(
CMRC |
Quote |
Chart |
News |
PowerRating), which fell 10.7% on
rumors that a memo to its sales force indicates weak sales. The company’s head
of investor relations denied the rumors, saying the memo was routine and was
intended only to motivate sales staff.Â
Even seemingly good news was not
enough to help another B2B HOLDR component. Agile Software
(
AGIL |
Quote |
Chart |
News |
PowerRating) tumbled
13.3% after reporting a one-cent loss per share vs. analyst expectations of a
two-cent loss, strong sequential and year-over-year earnings growth and positive
analyst comments. Another component, PurchasePro.com,
(
PPRO |
Quote |
Chart |
News |
PowerRating) lost
8.5%.Â
The Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating)
shed 5.4%, the Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) 3.6%, the Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating)
2.2%.
The Telecom HOLDR
(
TTH |
Quote |
Chart |
News |
PowerRating) fell 3.6%,
the Dow Jones Telecommunications iShares
(
IYZ |
Quote |
Chart |
News |
PowerRating) 3.5%. The sector took a hit
from BellSouth
(
BLS |
Quote |
Chart |
News |
PowerRating), which sold off on a lowered management outlook. For
analysis of BellSouth’s chart, check out my Trading
The News.
All charts in this commentary use a
logarithmic scale. Daily charts display 50-day moving averages of price (in red)
and of volume (in blue). Some daily charts may also display a 200-day moving
average (in black).
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.