Jan 03

EBAY On the Move

by Mike Paulenoff, Wed January 3rd, 2007

EBAY represents 28% of the HHH, the largest component of the Internet ETF. As we mentioned before the holidays, as part of our ongoing analytics, we will be posting analysis of the major components of the indices. EBAY is our first such posting.

My near- and intermediate-term work argues that the Dec 29 low at 30.02 ended a pullback off the 11/15 high at 33.99. Today's strong upmove indicates that EBAY has turned up into a new upleg that will continue the Aug-Nov advance, which points to upside acceleration that hurdles 34 on the way to 37.40-38. Only a failure to rally followed by a decline that breaks 30 will invalidate my current outlook.

As for the Internet sector as a whole, the HHH is acting well, and has a very compelling intermediate term pattern, as my earlier chart to subscribers shows.

Chart

Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!