Tech Leads ETF Relief Rally
The tech-focused tradable funds got a
bounce Tuesday as nearly all the U.S. exchange-traded fund benefited from an
overdue relief rally.
The Internet HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating) gained
11.0%, the day’s sharpest gain among the exchange-traded
funds.Â
Among its components, after Tuesday’s
close, San Jose, Calif.-based BEA Systems
(
BEAS |
Quote |
Chart |
News |
PowerRating) reported Q3 pro forma net
income of 7 cents a share vs. 3 cents a year ago and analyst estimates averaging
6 cents, according to First Call/Thomson Financial. The stock gained 12.6%.
BroadVision
(
BVSN |
Quote |
Chart |
News |
PowerRating) rallied 16.2%, Inktomi
(
INKT |
Quote |
Chart |
News |
PowerRating) 15.8%, RealNetworks
(
RNWK |
Quote |
Chart |
News |
PowerRating)
12.5%. Except for BroadVision, volume was mediocre.
The Nasdaq 100 Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating)
rose 8.1%, the Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) 7.8%, the Internet
Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating) 7.6%, the B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) 7.2%, the
Russell 3000 Growth iShares
(
IWZ |
Quote |
Chart |
News |
PowerRating) 6.6%, the Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 6.6%,
the Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) 6.4%, the Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) 5.7%.
The defensives managed gains as well,
despite the flows of money into growth and tech. The Pharmaceutical HOLDR
(
PPH |
Quote |
Chart |
News |
PowerRating)
rose 1.8%, the Dow Jones Healthcare
(
IYH |
Quote |
Chart |
News |
PowerRating) 1.5%, the Consumer Staples SPDR
(
XLP |
Quote |
Chart |
News |
PowerRating)
1.3%. Not all pharmaceutical stocks, however, act like defensives. Others behave like growth stocks. For example, see my chart analysis of Coulter Pharmaceutical in Trading
The News.
The downside was limited largely to
utilities ETFs. The Utilities HOLDR
(
UTH |
Quote |
Chart |
News |
PowerRating) lost 1.7%, the day’s largest loss
among the ETFs. The Utilities SPDR
(
XLU |
Quote |
Chart |
News |
PowerRating) fell 1.6%, the Dow Jones Utilities
iShares
(
IDU |
Quote |
Chart |
News |
PowerRating) 1.3%.
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.
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