Semiconductor HOLDRS (AMEX: SMH) Reverses From Support Says Market Timer Frank Kollar
May 30, 2007 (FinancialWire) (By Frank Kollar)
Shares of the exchange-traded fund Semiconductor HOLDRS (AMEX: SMH) have declined some 6% from their highs on May 14th. Prior to their April-May rally, Semiconductor HOLDRS was stuck in a tight trading range from September 2006 to mid-April 2007.
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 have seen the bottom of this correction.
Two important support levels were hit last Thursday, after which Semiconductor HOLDRS has reversed and moved higher. They are the 50% retracement of the entire April-May rally, and also the trading range highs at about $36.00 a share. This support should reverse the decline and launch a tradable rally as long as the rest of the stock market holds up.
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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