Biotech HOLDRS
(AMEX: BBH) Not a Good Bet Says Market Timer Frank Kollar
March 2, 2010 (FinancialWire) (By Frank Kollar)
Shares of the ETF Biotech HOLDRS (AMEX: BBH) rallied to
$103.06 on Monday, March 1. There may be a limit on the
upside for this ETF.
Shares of this widely traded Biotech ETF are closing in
on levels that have rarely been surpassed.
Biotech HOLDRS reached its all time high of $121.38 back
on March 3, 2000. Back in 2005, Biotech HOLDRS hit $106
08 a share and then reversed and turned lower. On July
23, 2009 Biotech HOLDRS reached $103.44 before reversing.
The current $103.06 a share for Biotech HOLDRS puts this
ETF right at levels that have been long term tops since
2005, and 15% below an all-time high that has not been
reached since 2000.
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 these levels and even if it does break out,
there may be very limited upside potential.
On the downside, a close below $100.49 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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