Utilities HOLDRS (AMEX: UTH) At Long Term Resistance Level Says Market Timer Frank Kollar

February 27, 2006

Shares of the exchange-traded fund Utilities HOLDRs (AMEX: UTH), which allows investors to trade a basket of utilities stocks including such powerhouses as: Duke Energy Corporation (NYSE: DUK), Exelon Corp (NYSE: EXC) and Southern Company (NYSE: SO), have again made new multi-year highs with Monday’s close at $137.70.

Back in August we said Utilities HOLDRs was headed for $133.00 a share. We are far above that forecast. Where to next?

Utilities HOLDRs are now just below a major Fib resistance level at $141.05, which is 127.2% above its year 2000 highs. This level may result in some consolidation and profit taking. But if Utilities HOLDRs closes above this resistance in coming weeks, traders can look for continued gains to the $165.85 level.

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.