Tech Funds Turn Nastier
The tradable funds aimed at the
cyclical and industrial sectors pulled higher Tuesday as the Federal Reserve
stood pat on interest rates. Furious selling in Nasdaq stocks deepened losses in
the tech-focused exchange-traded funds.
The Basic Industries SPDR
(
XLB |
Quote |
Chart |
News |
PowerRating)
rose 5.5%, the day’s sharpest gain among the exchange-traded
funds.Â
Even if you trade ETFs and not the
individual stocks, it always pays to look inside these securities to where the
strength and weakness lies. Among the Basic Industries SPDR’s largest
components, DuPont
(
DD |
Quote |
Chart |
News |
PowerRating) gained 2 3/4 to 44 3/8, Weyerhaeuser
(
WY |
Quote |
Chart |
News |
PowerRating) 1 11/16
to 39 9/16, International Paper
(
IP |
Quote |
Chart |
News |
PowerRating) 1 5/8 to 29 5/8.
The Industrial SPDR
(
XLI |
Quote |
Chart |
News |
PowerRating) rose
2.0%, the Cyclical/Transportation SPDR
(
XLY |
Quote |
Chart |
News |
PowerRating) 0.8%.
The B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating)
slumped 11.2%, the sharpest loss among the tradable funds. The Internet
Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating) declined 7.5%, the Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating)
6.8%, the Dow Jones Technology iShares
(
IYW |
Quote |
Chart |
News |
PowerRating) 3.9%.
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.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.