February 1, 2012
Shares of the ETF Market Vector Biotech (AMEX: BBH) continue to rally since correcting back in August 2011.
BBH has now closed above its March 3, 2000 rally closing high of $121.38 which puts it into a category of one. The bear market in 2000-2002 decimated all stock sectors, but Biotech has roared back.
How high can this volatile ETF go? No one knows the future but there are ways to still trade this advance safely.
Putting a sell stop at just below the last correction low, at say $119.00 a share, would risk 5.5% and still offer a chance to profit from this rally.
There is also support at $121.33, the January 24 intra-day low. Interestingly this is within pennies of the march 3, 2000 closing high.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in Market Vector Biotech.
Disclosure: I am long BBH.