Breakout For Biotech HOLDRS (AMEX: BBH) Says Market Timer Frank Kollar
September 19, 2007 (FinancialWire) (By Frank Kollar)
The exchange-traded fund Biotech HOLDRS (AMEX: BBH) broke out above resistance on Tuesday. Is it time to buy?
Biotechnology stocks have been lagging the rest of the stock market since January 2007. During that time there have been several breakouts and all have failed to launch new long-term trends. But no one knows ahead of time which breakout will be the one that continues higher.
The trick is to trade them, and follow strict money management rules protecting capital if the breakout fails. Tuesday’s breakout above $174.55,
that was also
above its previous short-term highs of last week, should take it to at least $178.44. At this point BBH will be up against key resistance. A close above $178.44 should propel this widely traded ETF to the $190.00 level.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in Biotech HOLDRS .
Follow your strategy and adhere to money management rules to protect capital. If you do not have money management rules, give FibTimer.com (http://www.fibtimer.com) a call. The surest way to lose money in the stock market is to trade without a plan.
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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