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Why buy the 8th best ETF

|Includes: Internet HOLDRs (HHH)

On Financial Tides I always try to pick the best of the breed whenever I have some room in my portfolios. Today I had some room in my ETF portfolio so I went to BarChart to screen for the ETFs with the best 14 day relative strength. The first 6 were all gold ETF's and since my portfolio already contained DGL I didn't want to be too heavily weighted in gold and the number 7 ETF was ECH the Chile ETF I added yesterday. Number 8 on the list was HHH - the First Trust Dow Jones Internet Holder.

BarChart rated HHH a 100% buy with 13 of 13 technical indicators a buy. HHH has hit 8 new highs in the last 20 trading sessions and 5 for 5 recently. In the last 65 days there has been a 31.49% price appreciation in the last 65 days.

On Wall Street Survivor Mark's checklist has the Survivor Sentiment rating a 5/5 and the technical rating also 5/5. Over on Motley Fool the all member rating was 27 to 4 and their All Stars rated it 5 to 1. Pretty good consensus all round

I checked the news to see if there was any negative news about the Internet sector and luckily Don Dion of the Street.com had analyzed the components of the Internet holder and gave the holder a thumbs up.

Recommendation: Buy the Internet Holder HHH around 57.75 with a protective stop loss no higher than 52.

Disclosure: I hold no positions in HHH at the time of publication.

Jim Van Meerten is an investor who writes about financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com