Is The Sell Off Over For Biotech HOLDRS (AMEX: BBH)? Asks Market Timer Frank Kollar
April 17, 2007
The exchange-traded fund Biotech HOLDRS (AMEX: BBH) has slowly been recovering from a steep correction lasting from early January to mid-March 2007. With core positions in Genentech (NYSE: DNA), Amgen (NASDAQ: AMGN) and Biogen (NASDAQ: BIIB), is it safe to buy Biotech HOLDRS yet?
Ina strong stock market of late, biotechnology stocks are considerably weaker than most other sectors, and Biotech HOLDRS has not even reached its first test of resistance at $185.88. If this level is surpassed, expect higher highs with further resistance levels to be met at $188.06 and then $193.59. Biotech HOLDRS still has a long way to go before traders can expect clear sailing ahead.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in Biotech HOLDRS .
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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