Cups, Handles and ETFs

Looking at the chart of the Telecom HOLDRs Trust (Ticker: TTH) Exchange Traded Fund assures me that the Cup with a Handle formations first popularized by William J. O’Neil the founder of Investors Business Daily financial newspaper still work, and they even work with ETFs. To this day, the Cup with a Handle patterns remains one of the most powerful tools for spotting proper stock purchase timing. I first posted on this ETF on July 25, less than three (3) months ago. Ever since the ETF broke above the handle (in the Weekly chart- bottom right), in heavy volume, the fund price has been in a strong steady uptrend. I’ve made the Telecom Holders Trust Fund a core holding for several of the accounts I manage. In less than three months the returns are up between 10.54% and 17.76%.

Other Current Holdings and Percent Change

• NVE Corp. (Ticker: NVEC) up 30.49%
• CarMax Inc. (Ticker: KMX) up 19.17%
• FoxHollow Technologies (Ticker: FOXH) up 10.84%
• Pharmaceutical HOLDRs Trust (PPH) up 9.91%
• China Automotive Systems (Ticker: CAAS) down 3.42% (stop set)
• EZCorp (Ticker: EZPW) up 0.47% (new position today)
  
  Recently closed positions in Avici Inc. (Ticker: AVCI)