Priceline Marks Down Net ETFs

  • September 27, 2000
  • Loren Fleckenstein

When Internets have no earnings, they
are judged on sales. When sales decline, watch out. A revenue warning from
Priceline.com whacked in the Nets Wednesday, sending the tradable funds in that
sector into the red.

The Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) sank
7.2%, the day’s biggest loss among the exchange-traded
funds. Among its components, Priceline
(
PCLN |
Quote |
Chart |
News |
PowerRating) tumbled 42%, while
in sympathy Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating) fell 12%, Amazon.com
(
AMZN |
Quote |
Chart |
News |
PowerRating) 5%, eBay
(
EBAY |
Quote |
Chart |
News |
PowerRating)
10%.

Yahoo and Priceline were clearly
distributional, falling hard on heavy volume and closing near the bottom of
their trading ranges. Yahoo broke through support at 99 7/8 (see Point
A in Yahoo chart below). Money flowed back into Amazon lifting the
stock off its lows to a close near of top of its trading range. 

For my technical view on Priceline,
check out my Trading
The News column.

The Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) lost
4.6%, the B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) 3.7%, the Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating)
2.8%, the Dow Jones Technology Index
(
IYW |
Quote |
Chart |
News |
PowerRating) 1.6%.

 

On the upside, the Energy SPDR
(
XLE |
Quote |
Chart |
News |
PowerRating)
gained 1.8%, the day’s largest advance among the ETFs.

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. 

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 newcomers read my tutorial, href=”/.site/stocks/education/strategies/06272000-6815.cfm”>Trading
HOLDRs: Unique Opportunity And Risk.

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