Financial, Industrial ETFs Lift
There was further deterioration in the
tradable tech funds Thuresday, but industrial, cyclical, and financial funds came
back.
The B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) lost
4.3%, the Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) 4.2%, the Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 3.6%, the
Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) 2.9%, the Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating)
slid 2.1%,Â
Among the Internet Infrastructure
HOLDR’s components, Exodus Communications
(
EXDS |
Quote |
Chart |
News |
PowerRating) lost 10.1%, Inktomi
(
INKT |
Quote |
Chart |
News |
PowerRating)
16.3%. RealNetworks
(
RNWK |
Quote |
Chart |
News |
PowerRating) plunged 44.0%. Overnight, the provider of
streaming online video and audio, RealNetworks said
it expects to report Q4 earnings of 2 cents a share, half First Call/Thomsom
Financial’s consensus estimate.
On the upside, the Basic Industries
SPDR
(
XLB |
Quote |
Chart |
News |
PowerRating) gained 3.7%, the Cyclicals/Transportation SPDR
(
XLY |
Quote |
Chart |
News |
PowerRating) 3.1%, the Dow
Jones Chemical iShares
(
IYD |
Quote |
Chart |
News |
PowerRating) 2.8%, the Dow Jones Basic Materials iShares
(
IYM |
Quote |
Chart |
News |
PowerRating)
2.6%, the Diamonds
(
DIA |
Quote |
Chart |
News |
PowerRating), which track the Dow, 1.9%.
Among the rate-sensitive ETFs, the
Financial SPDR
(
XLF |
Quote |
Chart |
News |
PowerRating) rose 2.3%, the Regional Banking HOLDR
(
RKH |
Quote |
Chart |
News |
PowerRating) 2.3%,
the Utility HOLDR
(
UTH |
Quote |
Chart |
News |
PowerRating) 2.1%, the Dow Jones Financial iShares
(
IYF |
Quote |
Chart |
News |
PowerRating)
1.8%, the Dow Jones Financial Services iShares
(
IYG |
Quote |
Chart |
News |
PowerRating) 1.8%. Note the bullish
relative strength lines as the share prices have been locked in a trading range.
I’ll give you one guess as to what the market is discounting here!
The top field of all charts in this
commentary uses a logarithmic price scale and displays a 50-day price average in
red. In the second field, a
blue relative strength line represents the displayed security’s price
performance relative to the S&P 500. The third field displays vertical daily
volume bars in black with a 50-day moving average in blue for volume.
Exchange-traded
funds combine traits
of stocks and mutual funds. Like mutual funds, an ETF represents diversified
ownership in a number of different stocks, greatly reducing company-specific
risk. Like stocks, ETFs trade on exchanges, nearly all of them, in fact, trade on
the American Stock Exchange at present. They quote throughout the day, enabling
traders to take advantage of intraday price moves.
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.
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