More Downside for Internet HOLDRS (NYSE:
HHH) Says Market Timer Frank Kollar
January 27, 2010 (FinancialWire) (By Frank Kollar)
Shares of Internet HOLDRS (NYSE: HHH) made a strong comeback
from intra-day lows on Tuesday, January 26, but more declines
are likely in coming weeks.
Internet HOLDRS may have made a solid comeback on Tuesday,
closing with a gain of .03 cents after steep intra-day
losses, but after breaking the 50-day moving average several
days ago, and now with a very bearish MACD, it will likely
decline to the next support level before there is any chance
of a bullish reversal.
Internet HOLDRS has support at the 50% retracement of
the July 8 to December 28 advance. This support is at $50.06,
some 8.7% lower that Tuesday’s January 26 close.
If this level is broken, the next support is at the 61.8%
retracement at $47.70, 12.8% lower. This is a critical
support level so if Internet HOLDRS closes below it, a
new analysis will be issued as there will likely be substantial
declines following such a break of support.
A bullish reversal day at or near either of these two
support levels would offer a low risk entry point for a
bullish trade, using the support level as a sell stop.
The Fibtimer.com (http://www.fibtimer.com)
Stock Timing Strategy holds a position in Internet HOLDRS.
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.
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.
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