Net Funds Follow Through
The tradable
Internet funds followed through Friday on their
prior-session breakouts, and the Internet HOLDR at last
overcame resistance at its intermediate-term moving average.
Meanwhile, the defensive exchange-traded funds took another
fall but showed signs of finding support.
The Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) rose 7.3%, clearing its 50-day moving average.
This was the Internet stock basket’s third straight gain
after rebounding from its July 11 low. The HOLDR has a ways
to go yet before encountering its next resistance level at
128 1/4 (see Point A on
the chart). The Dow Jones Internet Index iShares
(
IYV |
Quote |
Chart |
News |
PowerRating)
gained 2.7%.
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The Broadband
HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) gained 4.1%, following through nicely on
Thursday’s high volume gains and closing at the high of
Friday’s range. The Internet Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating)
picked up 2.1%, clearing resistance from June 20 (
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On the downside,
the Pharmaceutical HOLDR
(
PPH |
Quote |
Chart |
News |
PowerRating) slid 2.9%, breaking below
its 50-day moving average. But the basket of drug stocks
managed to come off the session low and close near the high
of the day’s range on strong volume. The Consumer Staples
SPDR
(
XLP |
Quote |
Chart |
News |
PowerRating) fell, recouped part of its loss, and closed
near its session high, as well. It closed off 1.3%.
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The Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating) held in place following Thursday’s decline. This
will be an interesting benchmark to watch. The biotechs have
benefited from rotation out of techs and have at times
participated in tech rallies. The dual nature seems to be
showing up again today, given that the Biotech HOLDR refused
to join in the decline that hit the Pharmaceutical HOLDR.
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