Telecom, Internet Funds Lead Broad Rally
Telecom, networking and Internet
stocks came alive Thursday, pushing the tradable funds in those areas ahead of
their peers. The breadth of the rally, by sector, was impressive. All save one
of the U.S.-focused exchange-traded funds ended in the black.
The Dow Jones Telecommunications
iShares
(
IYZ |
Quote |
Chart |
News |
PowerRating) jumped 5.6%, the day’s biggest gain among the exchange-traded
funds. This has been one of weakest ETFs measured by relative
strength. The DJ Telecom iShares have a three-month RS score of 5. In
other words, the security has underperformed 95% of all mutual and
exchange-traded funds in the TradingMarkets FundScanner.
The Telecom HOLDR
(
TTH |
Quote |
Chart |
News |
PowerRating), with a
three-month RS of 14, gained 5.4%. Among its component stocks, WorldCom
(
WCOM |
Quote |
Chart |
News |
PowerRating)
added 2 15/16 29, Global Crossing
(
GBLX |
Quote |
Chart |
News |
PowerRating) 2 to 31 7/8, Sprint
(
FON |
Quote |
Chart |
News |
PowerRating) 2
1/8 to 28 5/8, Sprint PCS
(
PCS |
Quote |
Chart |
News |
PowerRating) 2 7/16 34 1/2.
The battered Net funds went on the
mend. The Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) rose 4.7%, the B2B HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating)
4.3%, the Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) 3.8%, the Dow Jones Technology iShares
(
IYW |
Quote |
Chart |
News |
PowerRating)
3.7%, the Technology SPDR
(
XLK |
Quote |
Chart |
News |
PowerRating) 3.5%, the Internet Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating).
The battered Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating) also had a good day, adding 3.1%.
It was a good day for the financials.
The Dow Jones Financial iShares jumped
(
IYF |
Quote |
Chart |
News |
PowerRating) 2.9%, the Regional Banking
HOLDR
(
RKH |
Quote |
Chart |
News |
PowerRating) 2.9%, the Financial
(
XLF |
Quote |
Chart |
News |
PowerRating) 2.5%.
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
Average Crossovers. I also recommend newcomers read my tutorial,
HOLDRs: Unique Opportunity And Risk.