Biotech HOLDRS (AMEX: BBH) Takes A Hit Says Market Timer Frank Kollar
May 21, 2007 (FinancialWire) (By Frank Kollar)
The exchange-traded fund Biotech HOLDRS (AMEX: BBH) fell off a cliff in May, with share prices losing some 7% in only three weeks. 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. This week’s close at $177.10 came after Biotech HOLDRS bounced off strong Fib support at $176.61. If we move higher, we could very well have a nice rally from current levels. Bullish traders should use a tight stop just below $176.
However, if Biotech HOLDRS closes below $176.61 in coming days, we will be looking for continued selling to the prior correction lows at $173-$174.
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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