Tech, Financial ETFs Pull Back
Tech-focused ETFs pulled back Tuesday,
but the undertone of the market remained constructive, given the lighter volume
on the Nasdaq, continued base formation in the high relative strength stocks, and
stocks fading negative news.Â
The B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) lost
6.4%, the day’s sharpest loss among the exchange-traded
funds. Among the HOLDR’s components, Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating) fell 11.7%
after Lehman Brothers initiated coverage with a “neutral” rating.
FreeMarkets
(
FMKT |
Quote |
Chart |
News |
PowerRating) dropped 13.0%.
The Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating)
gave up 5.9%, the Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating) 4.5%, the Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating)
4.1%, the Nasdaq 100 Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) 3.7%, the Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating)
3.4%, the Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) 3.0%, the Dow Jones Technology
iShares
(
IYW |
Quote |
Chart |
News |
PowerRating) 2.5%, the Technology SPDR
(
XLK |
Quote |
Chart |
News |
PowerRating) 2.1%.
Among the rate-sensitivie ETFs, the
Dow Jones Financial Services iShares
(
IYG |
Quote |
Chart |
News |
PowerRating) backpedaled 1.7%, the Dow Jones
Financial iShares
(
IYF |
Quote |
Chart |
News |
PowerRating) 1.4%, the Financial SPDR
(
XLF |
Quote |
Chart |
News |
PowerRating) 1.2%.
On the upside, the telecommunications
sector continued to do repair work. The Dow Jones Telecommunications iShares
(
IYZ |
Quote |
Chart |
News |
PowerRating)
1.7%, the Telecom HOLDR
(
TTH |
Quote |
Chart |
News |
PowerRating) 1.6%.
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.