Time To Buy Biotech HOLDRS? Asks Market Timer Frank Kollar

November 18, 2009 (FinancialWire) (By Frank Kollar) — Shares of Biotech HOLDRS (AMEX: BBH) declined some 13% in just over two weeks in the last half of October and 15% from their rally high at $104.87 reached on July 30. Is it time to buy?

Shares of this widely followed biotech ETF have rebounded over the past two weeks, but unlike the major stock indexes which are at new 2009 highs; Biotech HOLDRS has regained only about half of its losses.

The October declines were the most severe and shares have regained exactly 61.8% of those losses. That is an important resistance level and if BBH can make a decisive close above $97.75 in coming days, we could see a run for $102.00 a share.

But this ETF does not meet the requirements for either a bullish or bearish trade. It is too risky at this time.

Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.

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.

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.

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