Time to Buy Biotech HOLDRS (AMEX: BBH)? Asks
Market Timer Frank
Kollar
November 18, 2009 (FinancialWire) (By Frank Kollar)
Shares of Biotech HOLDRS (AMEX: BBH) declined some 13%
in just over two weeks in the last half of October and
15% from their rally high at $104.87 reached on July 30.
Is it time to buy?
Shares of this widely followed biotech ETF have rebounded
over the past two weeks, but unlike the major stock indexes
which are at new 2009 highs; Biotech HOLDRS has regained
only about half of its losses.
The October declines were the most severe and shares have
regained exactly 61.8% of those losses. That is an important
resistance level and if BBH can make a decisive close above
$97.75 in coming days, we could see a run for $102.00 a
share.
But this ETF does not meet the requirements for either
a bullish or bearish trade. It is too risky at this time.
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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