Utilty, Energy Fight Fund Slump
The tradable funds fell across the
board Tuesday, led again by exchange-traded funds focused on technology stocks.
The B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) fell
5.5%. It was the day’s sharpest loss among the exchange-traded
funds, but the move tells little to the chartist about the security’s
most probable direction. The same could be said for many of the other ETFs right
now. Price moves are falling well within recent volatility without adding to a
picture of a trend or reversal. Another example would be the Dow Jones Internet
Index iShares
(
IYV |
Quote |
Chart |
News |
PowerRating), which lost 3.5%.
The Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating), which at
times runs counter to the other tech ETFs, joined in the downside, dropping
2.9%. The Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating) forfeited 2.8%, the Internet
HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 2.8%, the Internet Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating) 2.4%. the
Technology SPDR
(
XLK |
Quote |
Chart |
News |
PowerRating) 2.1%.
The Diamonds
(
DIA |
Quote |
Chart |
News |
PowerRating), which track
the Dow Jones industrial average, declined 1.8%. Shares in Dow component Eastman
Kodak
(
EK |
Quote |
Chart |
News |
PowerRating) accounted for nearly half the drop. Shares in the film giant
plunged after the company issued a profit warning. For a trader’s look at
Eastman Kodak’s price-and-volume chart, check out my Trading
The News column.Â
On the upside, money flowed into
utility stocks, lifting the Utilities SPDR
(
XLU |
Quote |
Chart |
News |
PowerRating) to its fourth straight
gain. The security’s 3.2% rise was the day’s biggest increase among the tradable
funds.
The Energy SPDR
(
XLE |
Quote |
Chart |
News |
PowerRating) closed up
2.3%, snapping a five-session losing streak.
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.