Cash Flees Old Economy To New
Money moved into Old Economy and
financial stocks Tuesday, lifting their tradable funds, while selling in techs
sent the tech-focused exchange-traded funds lower.
The Dow Jones U.S. Chemical Index
iShares
(
IYD |
Quote |
Chart |
News |
PowerRating) rose 4.3%, the day’s sharpest gain among the exchange-traded
funds. The index fund began trading June 16. The short-lived
trading history is why you’ll see only partial 50-day moving averages for price
and volume in the following chart.
Among the Chemical iShares’ largest
component stocks, DuPont
(
DD |
Quote |
Chart |
News |
PowerRating) jumped 6.0%, Dow Chemical
(
DOW |
Quote |
Chart |
News |
PowerRating) 9.0%.
The Basic Industries SPDR
(
XLB |
Quote |
Chart |
News |
PowerRating),
which also includes DuPont and Dow Chem, rose 4.1%. The Industrial SPDR
(
XLI |
Quote |
Chart |
News |
PowerRating)
added 1.7%.
Among the financials, the Financial
SPDR
(
XLF |
Quote |
Chart |
News |
PowerRating) moved ahead 2.6%, the Banking HOLDR
(
RKH |
Quote |
Chart |
News |
PowerRating) 2.5%, the Dow Jones
Fianncial Services iShares
(
IYG |
Quote |
Chart |
News |
PowerRating) 2.1%, the Dow Jones Financial iShares
(
IYF |
Quote |
Chart |
News |
PowerRating)
1.8%.
On the downside, the Semiconductor
HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) shed 6.6%, hit by 34.4% loss in National Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating)
and sympathetic selling throughout the semis. For my technical take on National
Semi’s and Techne’s
(
TECH |
Quote |
Chart |
News |
PowerRating) charts, see my
The News commentary.
The Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) lost
4.6%, the Nasdaq 100 Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) 4.3%, the Dow Jones Internet Index
iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) 3.0%, the Internet Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating) 2.9%.
If you’re new 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.