Semiconductor HOLDRS (AMEX: SMH) Takes Off Says Market Timer Frank Kollar
April 25, 2007 (FinancialWire) (By Frank Kollar)
A week ago we said that shares of the exchange-traded fund Semiconductor HOLDRS (AMEX: SMH) would likely break out in coming days. Semiconductor HOLDRS did break out last week, but on Tuesday we saw the fireworks. How high can Semiconductor HOLDRS go?
Semiconductor HOLDRS had been contained in sideways trading since early October 2006. With highs around $36.00 and lows around $33.00, Semiconductor HOLDRS has not been able to mount any sustainable rally, nor has it broken support and declined, since then. The current rally put Semiconductor HOLDRS at $37.14 at Tuesday’s close.
Though it seems a long way off, this rally could easily reach $40.00 a share in coming weeks. That level was where the last Semiconductor HOLDRS rally failed all the way back in December 2005. 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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