Weekend Update- BTK,DOT,SOX,& PPH
The Biotechnology Index (BTK)- Daily and Monthly charts
As you can see by looking at the daily chart of the BTK, it is in the process of breaking out of an ascending triangle pattern. The BTK is in a bullish trend reversal; indicators and oscillators are bullish. Today the BTK, is up 0.03% at 727.22 which is a new 52 week high. Resistance is at 811.60. The best momentum medium term will be in Bio-pharma stocks.
As you can see by looking at the monthly chart of the BTK it is also forming an ascending triangle. The BTK remains in a bullish trend reversal; indicators and oscillators are bullish. The BTK is very close to approaching it's old time highs. The stochastics support more strength as they are thrusting up.
Internet Index - Philadelphia (DOT) - Daily chart
The Internet Index is in a symmetrical triangle pattern. As you can see from the chart it is trying to break out above the down trend line. Indicators and oscillators are trying to go bullish. However, this sector remains weak. Stay underweight in this sector.
The Semiconductor Index (SOX)- Weekly chart
The weekly chart of the SOX shows that resistance is at 559.60. The SOX is not far from its 2004 highs, and it is important at this time that it take out the 2004 high. If the highs are taken out, the next stop would be 641. The moving averages are holding up nicely in a nice bullish fan. Indicators and oscillators are bullish and we are just waiting on a reversal to the upside. The SOX is bullish on all time frames.
The Pharmaceutical Holders ETF (PPH)
The daily chart of the PPH illustrates that it has taken out it's previous 6 month highs. It is the highest close since we have gotten in the PPH. Today the PPH is up 0.04% at $72.35. Indicators and oscillators are in a bullish trend reversal. It seems that this is the next sector that institutions are rotating into. Bio-pharma's are experiencing strength.
