Has Biotech HOLDRS (AMEX: BBH) Bottomed?
Asks Market Timer Frank Kollar
May 6, 2010 (FinancialWire) (By Frank Kollar)
Shares of the ETF Biotech HOLDRS (AMEX: BBH) have declined
dramatically over the past two months. Is a tradable bottom
near?
Biotech HOLDRS reached a closing high of $106.99 on March
22, 2010. Since then, shares have declined 11% but have
reached strong support levels.
In the big global selloff on Tuesday, May 4, Biotech HOLDRS
declined to $95.00 a share which is about 1% below very
strong support at $96.00 a share, the 61.8% retracement
of the entire March-April decline.
On Wednesday, May 5, Biotech HOLDRS reversed from the
$95.00 level and closed with a 1% gain at $96.37, on a
day when most markets were lower.
This could be a bottom. A bullish trade with a sell stop
at about $93.50 a share would have little risk and a decent
chance for upside gains to at least the $101-102 level
if not higher.
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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