Aggressive Buy For Semiconductor HLDRS (AMEX: SMH) Says Market Timer Frank Kollar
March 6, 2008 (FinancialWire) (By Frank Kollar)
Shares of Semiconductor HLDRS (AMEX: SMH) have lost some 30% from their highs back on July 17, 2007. But they may have finally bottomed.
Semiconductor HLDRS hit panic lows at $26.54 a share back on January 22 and have since been working their way higher. Over the past two months, Semiconductor HLDRS has been forming a pennant pattern on the daily charts, and though it has not yet broken out of that pennant, we see a decent trading opportunity though only for aggressive traders.
When Semiconductor HLDRS hit minor correction lows on March 4, it rebounded and closed the day with a bullish outside reversal pattern. On Wednesday, it again closed higher. A bullish trade at current levels has a good chance of success and a sell stop at $27.80 keeps the potential losses low.
A breakout above $29.62 a share should result in further gains and there is a lot of upside potential for this widely traded but very volatile ETF.
The Fibtimer.com (http://www.fibtimer.com) Stock 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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