Utilities HOLDRS (AMEX: UTH) Reaches Support Says Market Timer Frank Kollar

June 8, 2007 (FinancialWire) (By Frank Kollar)

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), began selling off two weeks before the rest of the stock market.

Yesterday’s huge decline in Utilities HOLDRs, which closed at $138.92, places it right at the 50% retracement of the entire 2007 advance. This is a support level that may result in a rebound. The next support, at $135.10, is also critical one. Look at the $138.92-$135.10 as a likely base for the current correction.

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.