Internet ETF, led by eBay, on the Rise
I told our subscribers early this AM that I wanted to reduce exposure to the long side, especially with oil prices rocketing, and bond prices plummeting. However, when I see a chart pattern like the enclosed upside breakout in the Internet HLDRs (AMEX: HHH) from a two month bullish coil, I view it differently than a mature upleg in an instrument that likely will be much more vulnerable to the swings in oil and bonds-- and gyrations of the major equity averages. Whether you buy that excuse or not, the HHH has a very compelling picture, with its major component, eBay (NASDAQ: EBAY), looking very promising as well.
Today's action in the HHH, led by eBay's surge, appears to have thrust the Internet ETF out of the confines of an 8-week bullish coil pattern, which should be the inauguration of a new upleg that projects to new highs in the 64.20/60 target zone. Only a sudden failure to move higher followed by a decline that breaks 59.60 will wreck the developing bullish pattern.