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11.10.09
Full Speed Ahead

Yesterday we predicted that the Dow would move very quickly through the 10,000-10,300 zone and most likely overshoot to the upside. So far, so good. Monday’s 200-point move took the Dow up 2% to 10226, its highest finish of the year and its second 200-point up day in the last three trading days. This leaves the index just 28% below its all time high.
10.22.09
Everything is Getting Worse, but Not as Quickly as Before

That’s what passes for good news these days, as Wall Street focuses on how soon growth might return to the economy.

The U.S. economy is losing hundreds of thousands of jobs a month, but that’s not as many as before.
10.01.09
Biotechnology

Unlike the billion-dollar pharmaceutical giants, biotech firms offer the potential for big payoffs. It’s not unusual for a small or mid-sized biotech stock to fluctuate 10%, 20%, 30% or more in a single day after announcing the approval or disapproval of one of its drugs. Biotechnology ETFs offer a way to share in the success of those companies that succeed and limit losses on those that fail.
10.01.09
Pharmaceuticals

Three pharmaceutical ETFs share similar characteristics. First there is SPDR’s S&P Pharmaceuticals ETF, (XPH), which tracks the S&P Pharmaceuticals Select index and holds 24 stocks.

10.01.09
Top of the Mountain?

We don’t expect a final top to form while everyone is worried about a final top forming. Not only do we need to see some high volume selling in the leaders, but we also expect to see negative breadth divergence. That is just not happening yet.

09.22.09
Equal Dollar

Finally there is First Trust’s NYSE ARCA Biotech Index ETF (FBT). The fund rebalances quarterly, initially holding equal weightings in each stock. Currently the fund has 20 stocks, with Human Genome Sciences being its top holding because the stock has gained more than the other holdings.