Net Funds Mark New Lows
The B2B HOLDR Tuesday led renewed carnage among the tech-focused
exchange-traded funds after a weaker-expected manufacturing report and bearish
analyst forecasts on the Internet infrastructure area hit the market.
The B2B HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) lost 19.6%, falling to a new low on active trade. It
was the day’s sharpest loss among the
funds.Â
Among the HOLDR’s components, Commerce
One
(
CMRC |
Quote |
Chart |
News |
PowerRating) fell 24.2%, Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating) 21.5%, PurchasePro.com
(
PPRO |
Quote |
Chart |
News |
PowerRating)
17.1%.
The Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating)
tumbled 18.3%, the Dow Jones Internet Index
(
IYV |
Quote |
Chart |
News |
PowerRating) 15.4%, the Internet
Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating) 10.5%, the Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 9.0%, the
Nasdaq 100 Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) 9.0%, the Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) 8.2%,
the Dow Jones Technology iShares
(
IYW |
Quote |
Chart |
News |
PowerRating) 8.1%, the Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating)
6.0%
I am keeping an eye on the
rate-sensitive funds. News of economic slowing should benefit equities, the
rate-sensitive stocks in particular. The rate-sensitive ETFs gave up ground
Tuesday.
The Dow Jones Financial Services
iShares
(
IYG |
Quote |
Chart |
News |
PowerRating) forfeited 3.3%, the Dow Jones Utilities iShares
(
IDU |
Quote |
Chart |
News |
PowerRating)
3.2%, the Financial SPDR
(
XLF |
Quote |
Chart |
News |
PowerRating) 2.9%, the Dow Jones Financial iShares
(
IYF |
Quote |
Chart |
News |
PowerRating)
2.8%, the Regional Banking HOLDR
(
RKH |
Quote |
Chart |
News |
PowerRating) 2.0%.
For my chart analysis of leading
stocks in the oil patch, see my Trading
The News commentary.
Among the defensives and yield
surrogates, the Dow Jones Utilities iShares
(
IDU |
Quote |
Chart |
News |
PowerRating) picked up 4.1%, the Utilities
SPDR
(
XLU |
Quote |
Chart |
News |
PowerRating) 2.8%, the Pharmaceutical HOLDR
(
PPH |
Quote |
Chart |
News |
PowerRating) 2.3%, the Dow Jones
Healthcare iShares
(
IYH |
Quote |
Chart |
News |
PowerRating) 2.1%, the Consumer Staples SPDR
(
XLP |
Quote |
Chart |
News |
PowerRating) 1.9%.
Note the relative strength lines in these securities: clear outperformance
relative to the S&P 500. No sign here that the bearish character of the
market has changed.
03
04
05
On the downside, the Internet
Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating) lost 3.7%, the B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) 3.2%,
the Cyclicals-Transportation SPDR
(
XLY |
Quote |
Chart |
News |
PowerRating) 2.0%, the Dow Jones Technology
iShares
(
IYW |
Quote |
Chart |
News |
PowerRating) 1.7%, the Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) 1.6%, the
Technology SPDR
(
XLK |
Quote |
Chart |
News |
PowerRating) 1.6%, the Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) 1.1%.
06
07
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 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.