Biotech HOLDRS (AMEX: BBH) Nearing Top? Asks Market Timer Frank Kollar
July 29, 2009 (FinancialWire) (By Frank Kollar)
Shares of Biotech HOLDRS (AMEX: BBH) remain in a strong uptrend. How high can they go?
Biotech shares have had rallies like this before. In 2005 and also in 2008 Biotech shares had incredible rallies. But they all ended and they all fell back to earth. So will this one.
The concern with this rally is that Biotech shares are right at the highs that stopped both those previous rallies. In 2005 it was at BBH $108 and in 2008 it was at BBH $104.
Sure Biotech shares can continue higher. In fact we have a position in BBH and would not consider selling it at current levels.
But we would not enter a new position. The risk is far too high.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in Biotech HOLDRS.
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.
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.
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