Hi-Ho Bio!
Readers of this column and subscribers
to my
nightly service know that I’ve been bullish the
Biotech
sector since early June. It was disappointing therefore when our long Biotech
trade, established ca. 72.00 on July 17, was stopped out on July 24. How
frustrating it was to watch the Biotech shares reverse that day, and catapult
higher over the following week.Â
I remained long biased and waited patiently for the right setup. In my
July 30 column I wrote: “Sector
wise, I continue to like the
Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating))
area. Biotech has had an impressive record so far at leading this latest turn in
the market.â€Â  Then, on Tuesday, August 6, I issued a long trade in the BBH at
82.20. You can imagine how gratifying it was to see the performance of the BBH
over the past three days. The BBH closed above 87 today (Friday), is trading
above its 10- and 50-day averages, and has the potential to reach higher levels
(of course it’s never a straight line to “higher levels,” but you knew that
already).Â
I made a failed attempt to buy the beaten-down
Telecom
sector shares this week
(
TTH |
Quote |
Chart |
News |
PowerRating), only to get stopped out for an 85 cent
loss. Readers are also long
U.K. iShares
(
EWU |
Quote |
Chart |
News |
PowerRating) from 12.80. Â
Friday’s market appears to be a low-volume, low-momentum re-test of resistance
in the
S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating) and
Dow
(
$DJX |
Quote |
Chart |
News |
PowerRating)
while the
Nasdaq 100
(
$NDX |
Quote |
Chart |
News |
PowerRating) still remains below its swing high resistance of July 31. The odds
are fairly good that we will see some back-and-fill action early next week, as
the market digests its recent gains.
Have a great weekend.
Â
