Bouncers & Sliders
The Semiconductor HOLDR was one of the
few bright spots Monday as most of the tech-focused tradable funds took another pasting.
The Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating)
jumped 4.3%, the day’s sharpest gain among the
funds. The positive price move on heavy volume made for the HOLDR’s
first accumulation day since Oct. 26. All charts in this commentary use a
logarithmic price scale as well as 50-day moving averages for price (red) and
volume (blue). Some charts may also include a 200-day moving price average
(in black).
Among its component stocks, Novellus
(
NVLS |
Quote |
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News |
PowerRating)
rose 7.6%, Micron Technology
(
MU |
Quote |
Chart |
News |
PowerRating) 7.5%, Advanced Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating)
6.2%, Intel
(
INTC |
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Chart |
News |
PowerRating) 3.2%. The volume coming into these issues was less than
impressive.
The Cyclicals/Transportation SPDR
(
XLY |
Quote |
Chart |
News |
PowerRating)
recovered 2.8%. The Telecom HOLDR
(
TTH |
Quote |
Chart |
News |
PowerRating) rose 2.0%, the Dow Jones
Telecommunications iShares
(
IYZ |
Quote |
Chart |
News |
PowerRating) 1.6%, the the Dow Jones Basic Materials
iShares
(
IYM |
Quote |
Chart |
News |
PowerRating) 1.5%.
The downside was much broader and more
forceful in terms of relative price moves. Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating) shed 9.4% on
heavy volume, It was the day’s sharpest loss among the ETFs.
Component Affymetrix
(
AFFX |
Quote |
Chart |
News |
PowerRating)
forfeited 12.0%. On Friday, a federal jury found that the Santa Clara,
Calif.-based company had infringed an Oxford Gene Technology Ltd. patent for a
process that speeds analysis of genetic material. But was the lawsuit a reason
for the tech sell-off, or a pretext? There were harsher declines among the some
of the other components without comparably negative news. Enzon
(
ENZN |
Quote |
Chart |
News |
PowerRating) fell
16.1%, Gilead Sciences
(
GILD |
Quote |
Chart |
News |
PowerRating) 12.8%, IDEC Pharmaceuticals
(
IDPH |
Quote |
Chart |
News |
PowerRating)
15.1%.
There’s a lesson here for traders. In
the final count, I don’t care why a stock may move. I just care that it moves!
If a trade meets my criteria, I enter. If a trade crosses my risk tolerance, I
exit. In either case, I don’t question the message of the market by asking why.
Note the heavy volume behind the declines. Institutions are bailed from the this
industry group.
The B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) shed
6.7%, the Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating) 6.3%, the Russell 3000 Growth
iShares
(
IWZ |
Quote |
Chart |
News |
PowerRating) 5.8%, the Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) 5.7%, the
Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 5.0%.
Defensives felt the whip of the market
as well. The Pharmaceutical HOLDR
(
PPH |
Quote |
Chart |
News |
PowerRating) lost 4.2%, the Dow Jones Healthcare
iShares
(
IYH |
Quote |
Chart |
News |
PowerRating) 4.2%, the Consumer Staples SPDR
(
XLP |
Quote |
Chart |
News |
PowerRating) 3.0%.
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