Big Rally in Shares of Biotech HOLDRS (AMEX: BBH)
Says Market Timer Frank Kollar
January 20, 2010 (FinancialWire) (By Frank Kollar)
Shares of the Biotech HOLDRS (AMEX: BBH) have begun the
final run back to their prior July highs.
Biotech HOLDRS had greater losses than the major indexes
in the late October sell off, losing 14.3% from their July
highs after they had almost reached $105 a share.
They had since rallied back to strong resistance at $98.76
in mid-November, the 61.8% retracement level for the July
to October decline, before stalling at that level and again
pulling back.
But the rally picked up steam again in January and this
time closed above the $98.76 level, thus forecasting a
run for the July highs.
After losing ground last Friday, January 15, before the
three day holiday weekend, Biotech HOLDRS gapped open on
Tuesday, January 19 and never looked back, tacking on some
2% and closing at $101.42.
Biotech HOLDRS should close in on the $105 level in coming
days and that will be the make or break point for the rally.
A decisive close above and Biotech HOLDRS could realize
substantial additional gains in coming weeks.
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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