Telecom HLDRS (AMEX: TTH) Nears 2006 Support Levels Says Market Timer Frank Kollar
February 21, 2008 (FinancialWire) (By Frank Kollar)
Shares of the exchange-traded fund Telecom HLDRS (AMEX: TTH) took another steep dive on Wednesday, February 20, reaching levels that have not been seen since the start of the 2006 telecom rally.
The current decline started in October 2007 and has now loped some 29% off share prices. Back in May of 2006 Telecom HLDRS began a rally from correction lows at $28 a share. The current correction in Telecom HLDRS touched $28.64 intra-day during the panic lows on January 22.
Telecom stocks are again testing those panic lows and are again declining precipitously reaching $29.80 per share on February 20 before rebounding a bit and closing at $30.93.
Our current view of the entire sector is bearish, but if this test of the panic lows holds, that view could quickly change. Beware telecom stocks if Telecom HLDRS closes decisively below $30.00 a share.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy may hold a position in Telecom 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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