Huge Rally For Semiconductor HOLDRS (AMEX: SMH) Says
Market Timer Frank Kollar
April 19, 2007
Shares of the exchange-traded fund Semiconductor HOLDRS (AMEX: SMH) rallied 3% on Wednesday to close at $35.58. Semiconductor HOLDRS have been contained in sideways trading since early October 2006. With highs around $36.00 and lows around $33.00, Semiconductor HOLDRS has been unable mount any sustainable rally, nor has it broken support and declined. What’s next for this widely traded ETF?
Semiconductor HOLDRS , which allows investors to trade a basket of chip stocks including such powerhouses as: Applied Materials Inc (NASDAQ: AMAT), Intel Corporation (NASDAQ: INTC) and Texas Instruments Incorporated (NYSE: TXN), may be about to break out.
A close decisively above $36.00 would likely result in a tradable advance that could last several months. Fibtimer.com (http://www.fibtimer.com) holds a position in Semiconductor HOLDRS in its ETF Timer Portfolio.
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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