Biotech ETF Trend Likely to Continue

08/15/2012 10:00 am EST

Focus: ETFs

This high flyer shows no clear signs of stopping, although caution is always warranted, writes Frank Kollar.

Shares of the Market Vectors Biotech ETF (BBH) may have the reputation of being volatile, but for those looking for a strong current uptrend, BBH fits the bill.

Since hitting correction lows at $29.33 back on August 7, 2011, BBH has risen steadily over the past year to $49.66 as of Monday, August 13 near the close. This 69% gain puts the biotech sector near the top in performance.

chart
Click to Enlarge

There is still some volatility, and buyers of this ETF should be prepared for 5% to 8% pullbacks.

A trailing stop around 10% should protect against a further corrective movement. Even lower risk would be had with a stop at $47 a share, the July 24 correction low.

Frank Kollar can be found at FibTimer.com.

Related Articles on ETFs

Keyword Image
The Omen
12/07/2017 10:50 am EST

The probability of an equity market correction over the next few months is slim to none, so there co...