Safe Buy? Look To Utilities HOLDRS (AMEX: UTH) Says Market Timer Frank Kollar

February 28, 2006

Only yesterday we looked at shares of the exchange-traded fund Utilities HOLDRs (AMEX: UTH), which at Monday's close made new multi-year highs at $137.70.

On Tuesday we had a huge sell off in the stock market, sparked by a mini-crash in the Chinese stock market, a possible assassination attempt on VP Cheney in Afghanistan, and bearish comments from prior Fed Chief Alan Greenspan.

While nothing will be absolutely safe in the coming week or two, our best bet is again on Utilities HOLDRs. Tuesday's selling hit all financial sectors, but after the strong gains recently, Utilities HOLDRs only suffered losses that cancelled out the prior day's gains.

Yes, that was still a 3% loss, but considering, this ETF held up extremely well. We expect it to continue to hold up well over coming days.

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.