Semiconductor HLDRS (AMEX: SMH) Headed Lower Says Market Timer Frank Kollar
November 15, 2007 (FinancialWire) (By Frank Kollar)
Shares of Semiconductor HLDRS (AMEX: SMH) were in a downtrend long before the current stock market weakness. Now a long-term support level has been broken.
Semiconductor HLDRS is now below the $33.00, a level that acted as support from August 2006 through April 2007. In April 2007 Semiconductor HLDRS rallied and it looked as if the $33.00 support level was nothing more than an historical data point on the chart. Wednesday’s close was at $32.91.
Another bearish indicator is Semiconductor HLDRS ‘s close below the Fib 61.8% retracement level for the entire July 2006 through July 2007 advance. The close below this support level, at $33.71, forecasts a further decline to the next Fib support level, at $31.62.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy may hold a position in Semiconductor HLDRS .
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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