Nets And Biotechs Shape Up
The tradable
Internet and biotech funds came through Tuesday with
constructive behavior, pulling further above
intermediate-term moving averages and nearing mid-levels.
Exchange-Traded
Funds
The Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating) followed through on Monday’s gain with a pickup in
trading volume. The tradable fund gained 2.0% to 176 15/16.
That puts the HOLDR within easy striking distance of its
mid-level of 179. All charts in today’s column are plotted
on a logarithmic scale.
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Clearing its
mid-level is a key test of a stock’s ability to overcome
overhead supply, the amount of shares in the hands of
investors or traders with paper losses. These so-called
rallies, which saps upside momentum.
The biotech sector
got a lift from Celera Genomics
(
CRA |
Quote |
Chart |
News |
PowerRating). The Wall
Street Journal reported that the company is ready to
report the sequencing of 3 billion DNA letters in the human
genetic makeup. The stock gained 18 1/2 to 138 1/2 on double
its average volume. The stock broke out of a low
cup-with-handle pattern on Monday. That’s the kind of
constructive action that you want to see in a sector’s
leadership stocks.
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The various
Internet funds did well. The Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating),
which track the Dow Jones U.S. Internet Index, rose 2.4%.
Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating) advanced 4.9%, the
day’s biggest percentage gain among the exchange-traded
funds. Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) added 4.7%, B2B Internet
HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) 2.7%.
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On the downside,
the Financial SPDR
(
XLF |
Quote |
Chart |
News |
PowerRating) lost 1.3% and continued to
equivocate around its 50-day moving average.
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Signs of a slowing
economy continued to weigh on old-line sectors. The
Industrial SPDR
(
XLI |
Quote |
Chart |
News |
PowerRating) slid 3.2%, the largest loss among
the U.S.-focused tradable funds. But the defensive ETFs were
unable to reap any gains off that misery. Pharmaceutical
HOLDR
(
PPH |
Quote |
Chart |
News |
PowerRating) lost 1.9%, the Consumer Staples SPDR
(
XLP |
Quote |
Chart |
News |
PowerRating)
1.7%.
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Mutual
Funds
The day’s best
performances were concentrated in small-to-mid-cap and
technology funds. Scudder 21st Century Growth
(
SCTGX |
Quote |
Chart |
News |
PowerRating)
improved its Net Asset Value by 3.4%, Van Wagoner Mid-Cap
(
VWMDX |
Quote |
Chart |
News |
PowerRating)
3.1%, Firsthand Technology Innovators
(
TIFQX |
Quote |
Chart |
News |
PowerRating) 3.1%,
and WWWInternet
(
WWIFX |
Quote |
Chart |
News |
PowerRating) 3.0%.