Seeking Alpha

Moby Waller's  Instablog

Moby Waller
Send Message
Moby Waller is a former CBOE Market Maker floor trader and off the floor London-based European Index Options Trader. He now works with BigTrends.com and is a Research Analyst and Portfolio Manager for BigTrends.com's ETF TRADR (http://www.bigtrends.com/getstarted/etfgrowth/), which provides... More
My company:
BigTrends
My blog:
BigTrends Blog
  • Know Your ETF's Holdings, Let The Buyer Beware 0 comments
    May 22, 2009 4:08 PM | about stocks: TTH, UNG, T, VZ, EPI

    May 22, 2009

    Let's take a look at some of this week's top- and bottom-performing ETFs and ETNs.  Keep in mind that we cull the list to have a variety of sectors and we toss out Ultra, UltraShorts, 2X, 3X, & Inverse ETFs.

    Some of these names are lightly traded and may be fairly illiquid.  Make sure that you research the holdings and design of these ETFs before considering any trade.


     

     

     

     

    Data courtesy of msn money:

    On the positive side, EPI is an India-related ETF ... the India stock market saw massive gains on Monday after election results there were viewed favorable by the investment community.  Also some Natural Resource names showing up this week among the gainers.

    On the down side, Natural Gas (UNG) reversed sharply lower over the past week and a half; and this is in divergence from Crude Oil which is generally rallying.

    One of the poorer performers on the week is TTH, the Telecom HOLDRS.  This security is an example of why investors and traders should research and investigate the ETF that they may be considering trading.  According to Yahoo Finance, TTH is over 85% concentrated in just 2 stocks!  56% in AT&T (symbol T) and 29% in Verizon (VZ).  This is certainly NOT a diversified Telecommunications holding ... basically by investing or trading this ETF you are speculating on 2 stocks, T and VZ.

    On a technical basis, there isn't much positive to see on either long-term or shorter-term TTH charts.  The Weekly Chart below shows the consisent downtrend in the security, with rally attempts foiled by the middle 50 area on Weekly Percent R.

    TTH Weekly Chart


     

     

     

     

     

     

     

     

     

     

    On the Daily Chart below, you can see that are largely rangebound in the 22 to 25 area, although 20 is certainly a downside target we could reach.  Percent R on the Daily basis is breaking down, showing the weakness in the shares.

    TTH Daily Chart




     

     

     

     

     

     

     

     

     

    Moby Waller
    BigTrends.com
    1-800-244-8736
    Disclosure -- none

    In BigTrends ETF Options Trader advisory service, Andrew Hart recommends specific real-time ETF option trades on the best-moving, most-liquid ETFs.

    Themes: ETFs, Natural Gas, Telecom, India Stocks: TTH, UNG, T, VZ, EPI
Back To Moby Waller's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.