Shares of Biotech HOLDRS (AMEX: BBH)
Rally Says Market Timer Frank Kollar
February 18, 2010 (FinancialWire) (By Frank Kollar)
Shares of the ETF Biotech HOLDRS (AMEX: BBH) rallied 1.6%
on Wednesday, February 17 while the stock market had fractional
gains.
Biotech HOLDRS, which closed at $102.93, are close to
their February 1 rally highs at $103.78. If Biotech HOLDRS
closes above $103.78 it should reach the $105 level in
coming days.
This is where the real test begins.
Biotech HOLDRS has rallied to about this level several
times since 2008 and each rally then reversed. Back in
2005, Biotech HOLDRS hit all time highs at $106 a share
and then reversed and turned lower.
We would be very careful with bullish positions here.
The upside is extremely limited unless Biotech HOLDRS can
break out above $106 a share. It has a five year history
of failing at this levels.
On the downside, a close below $100 a share would probably
result in declines to at least $95 a share and possibly
down to the $90 level.
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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