BIOTECHS ARE HAVING ANOTHER STRONG DAY

BIOTECH INDEX NEARS ANOTHER UPSIDE BREAKOUT... After retesting its 50-day average last week, the Biotech Index is nearing another upside breakout. It's within a couple of points of its December peak near 550. Its relative strength line also looks encouraging. It bottomed during August (see first arrow) and then weakened from September to early December. It's moving up again (see second arrow) and is challenging the April/September down trendline. It's also giving a boost to healthcare.

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BIOTECH LEADERS ... I recently showed some of the bigger biotech leaders. Here they are again. All are in uptrends with rising relative strength lines. And all are rising today. The relative strength line for Amgen is nearing a bullish breakout of its own. Biogen Idec has been consolidating over its spring breakout point, which is a sign of continuing strength. Genzyme continues to consolidate over its second half highs.

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INVITROGEN LEADS NASDAQ HIGHER -- DNA TESTING RESISTANCE ... A biotech stock that we don't cover too often is the day's biggest percentage gainer in the Nasdaq 100 Index. Invitrogen recently crossed over its moving average lines and is close to a new six-month high. Chart 6 shows Genentech (DNA) challenging its autumn highs. A close through that chart barrier would constitute a bullish breakout. The stock is due to report earnings after the close today.

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