How Low Can Semiconductor HOLDRs (AMEX: SMH) Go? Asks Market Timer Frank Kollar
October 25, 2007 (FinancialWire) (By Frank Kollar)
Shares of the Exchange Traded Fund Semiconductor HOLDRs (AMEX: SMH) have been decimated in recent weeks with declines of 13% in October alone.
Semiconductor HOLDRs hit intra-day lows below $34.00 a share on Wednesday, October 24 th, and these lows may very well have marked the bottom of this decline. From September 2006 through April 2007 Semiconductor HOLDRs shares held just above the $33.00 level before finally advancing with the rest of the stock market.
The current declines reached $33.70 intra-day on Wednesday before reversing and closing at $34.45. A reversal from strong support levels often indicates a buying opportunity. It also offers a good sell stop, as a close below support at about $33.25 would be very bearish.
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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