Net ETFs Lead Kin Lower
The Net-focused tradable funds Friday
led a broad decline among the exchange-traded funds that left not a single ETF
showing a gain of one percent or more.
Despite the damage, my favorite
indicators continue to show bullish complacency. That bodes ill for
those looking for a bottom in the equities market. The CBOE put-call ratio stood at
0.83
as of Friday’s close. Instead of getting scared out, people are continuing to
try to pick bottoms.
The Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating)
fell 9.3%, the Internet Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating) 8.5%, the Nasdaq 100
Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) 7.1%, the Dow Jones Technology iShares
(
IYW |
Quote |
Chart |
News |
PowerRating) 7.1%,
the B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) 6.9%, the Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating)
6.8%, the Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) 6.7%, the Software HOLDR
(
SWH |
Quote |
Chart |
News |
PowerRating) 6.5%,
the Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) 5.6%.
The action in the financial ETFs
showed bearish pullbacks from wedging chart formations. The Dow Jones Financial
Services
(
IYG |
Quote |
Chart |
News |
PowerRating) lost 2.5%, the Dow Jones Financial SPDR
(
XLF |
Quote |
Chart |
News |
PowerRating) 2.2%, the
Dow Jones Financial iShares
(
IYF |
Quote |
Chart |
News |
PowerRating), the Regional Banking HOLDR
(
RKH |
Quote |
Chart |
News |
PowerRating)
1.7%.
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.
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.