Select Sector SPDR-Health Care (AMEX: XLV) Support Holds Says Market Timer Frank Kollar
July 3, 2006 (FinancialWire) (By Frank Kollar)
Select Health Care’s holdings primarily include health care equipment and supplies, health care providers and services, biotechnology, and pharmaceuticals industries. Current top holdings are Johnson & Johnson (NYSE: JNJ), Pfizer Inc (NYSE: PFE), and Amgen Inc (NASDAQ: AMGN).
Exchange-traded fund Select Sector SPDR-Health Care (AMEX: XLV ) tested a critical support level on June 27 and again on June 28. This level was the 50% retracement of Select Health Care’s entire October 2005 through March 2006 advance.
From a high of $32.91, Select Health Care lost 10% in only three months. Thursday’s mega-rally in the U.S. financial markets appears to have turned around this stock and we may be looking at a tradable rally from current levels.
Fibtimer.com (http://www.fibtimer.com) has listed SPDR-Health Care as a short position in its ETF Timing Strategy since May 6, 2006. This bearish position will change if Select Health Care continues higher in coming days.
Aggressive traders can already consider long trades of this ETF, using Select Health Care’s trading lows of last week, at $29.56, as a protective stop.
Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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