How Low Can Pharmaceutical HLDRS (AMEX: PPH) Go? Asks Market Timer Frank Kollar

April 1, 2008 (FinancialWire) (By Frank Kollar)

Shares of the ETF Pharmaceutical HLDRS (AMEX: PPH) have been considerably weaker than the stock market in 2008, and that is saying something of late.

The stock market hit panic lows back on January 22 and has since been recovering in most sectors. But Pharmaceutical HLDRS did not recover, and has since lost another 7% based on Monday’s March 31 close.

Monday’s close was also a gap down day that has placed Pharmaceutical HLDRS in danger of reaching, and possibly breaking, it’s March 17 closing correction lows at $68.85.

If Pharmaceutical HLDRS does break below, and close below $68.85, short positions could be considered, using a price 5% above the March 17 lows as a buy stop. For now, we would not consider a bullish position at all.

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.