An Old Familiar Pattern

Biotechs have been positive for the past three days
and, as you might have expected, this has yielded some opportunities in
individual stocks within the group.

Leading the way on Wednesday was a good setup in Human Genome Sciences
(
HGSI |
Quote |
Chart |
News |
PowerRating)
.

HGSI broke out of an ascending triangle on 300% of its average
daily volume. The move was off a bounce from a confluence of its 50-day moving
average and the bottom of the ascending triangle.

Traders will be looking for follow-through because the close was
near the top of its intraday range.

If there is some substance and sustainability to this Nasdaq
rally, you might look for some of the leadership to be in the biotech group.

Till Thursday,

Eddie