Saturday, July 26, 2008
The next "big" thing
I've thought for several years that the catalyst for the next great bull market will come out of the biotech sector. Don't get me wrong we aren't finished with the secular bear market yet and probably won't be for a while. We may be taking the first baby steps toward the biotech revolution though. The BBh just broke out of a 2 1/2 year consolidation. I've shown here and here in the past that the size of the consolidation is often a sign to how large the rally will be. Usually the break out will be tested soon after the intial break. That test will be an excellent time to take long positions in this sector.