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Shares of Biotech HOLDRS (AMEX: BBH) Rally

|Includes: VanEck Vectors Biotech ETF (BBH)

August 13, 2010

Shares of the ETF Biotech HOLDRS (AMEX: BBH) rallied on Thursday, August 12, while the stock market continued to sell off.

Biotech HOLDRS has been stronger than the general market since it put in a solid double bottom in June and early July, rising some 13% from July to mid-August.

Shares sold off after reaching their 50% retracement level of the entire March to July declines at $96.63. This was also the 200-day moving average.

But half of those losses were recovered on August 12 as shares bucked the trend and rose $.99 or just over 1%.

If Biotech HOLDRS can close above $96.77, look for a run to at least $100 a share and possibly a test of the prior rally highs at $106 a share.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in Biotech HOLDRS.



Disclosure: The Fibtimer.com (www.fibtimer.com) ETF Timing Strategy holds a position in Biotech HOLDRS.