‘Net Architecture Fund Nears High

• August 28, 2000
• Loren Fleckenstein

It was another
range-bound session Monday for most of the tradable funds,
although the Internet Architecture HOLDR is pulling within
striking distance of its all-time high.

The basket of
Internet architecture stocks
(
IAH |
Quote |
Chart |
News |
PowerRating) rose 2.1%, the day’s
sharpest gain among the U.S.-focused href=”/.site/funds/feducation/basicknwg/02292000-4509.cfm”>exchange-traded
funds. The HOLDR closed at 104 1/2. Its all-time
intraday high, set march 27, is 106 7/8.

border=”0″
src=”https://tradingmarkets.com/media/images/fundmovers/flow082800-01.gif”
width=”470″ height=”320″>

Among the Internet
Architecture HOLDR’s components, Network Appliance
(
NTAP |
Quote |
Chart |
News |
PowerRating)
rose 3 1/16 to 103 7/8, Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating) 3 1/16
to 127 13/16, and Hewlett-Packard
(
HWP |
Quote |
Chart |
News |
PowerRating) 1 1/4 to 120.
Many of the HOLDR’s components have made extended price
runs.

An exception is
Network Applianace, which appears to be completing a
six-month base. Another special case is Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating),
which has repeatedly encountered resistance at 70 a share,
yielding a possible pivot point for traders.

border=”0″
src=”https://tradingmarkets.com/media/images/fundmovers/flow082800-02.gif”
width=”470″ height=”320″>

border=”0″
src=”https://tradingmarkets.com/media/images/fundmovers/flow082800-03.gif”
width=”470″ height=”320″>

The rate-sensitive
ETFs recorded gains. The Financial SPDR
(
XLF |
Quote |
Chart |
News |
PowerRating) added
1.8%, the Utilities SPDR
(
XLU |
Quote |
Chart |
News |
PowerRating) 1.8%, the Utility HOLDR
(
UTH |
Quote |
Chart |
News |
PowerRating)
1.5%, the Dow Jones Financial Sector iShares
(
IYF |
Quote |
Chart |
News |
PowerRating) 1.3%.

border=”0″
src=”https://tradingmarkets.com/media/images/fundmovers/flow082800-04.gif”
width=”470″ height=”320″>

Citigroup
(
C |
Quote |
Chart |
News |
PowerRating),
the No. 1 U.S. financial services company, rose 1 15/16 to
58 7/8, plowing higher into new high ground. American
Express
(
AXP |
Quote |
Chart |
News |
PowerRating) picked up 3 5/16 to 59 7/8.

border=”0″
src=”https://tradingmarkets.com/media/images/fundmovers/flow082800-05.gif”
width=”470″ height=”320″>

border=”0″
src=”https://tradingmarkets.com/media/images/fundmovers/flow082800-06.gif”
width=”470″ height=”320″>

On the downside,
the Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) slumped 3.6%. One of the
basket’s largest components, Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating) shed 12 3/16
to 122 1/16 on heavy volume after a Lehman Brothers analyst
said she maintains a "neutral" recommendation on
Yahoo.

border=”0″
src=”https://tradingmarkets.com/media/images/fundmovers/flow082800-07.gif”
width=”470″ height=”320″>

border=”0″
src=”https://tradingmarkets.com/media/images/fundmovers/flow082800-08.gif”
width=”470″ height=”320″>

If you’re new to
exchange-traded funds, be sure to visit TradingMarkets’ color=”#0000FF”>Knowledge Center, dedicated to
explaining the basics of trading and active investing in
ETFs and mutual funds. Just click on the color=”#0000FF”>Funds tab near the top of this
page, then click on the Knowledge
Center tabs.

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 href=”/stocks/education/strategies/05262000-6129.cfm”>Moving
Average Crossovers. I also recommend that newcomers read
my tutorial href=”/.site/stocks/education/strategies/06272000-6815.cfm”>Trading
HOLDRs: Unique Opportunity And Risk.