With every major market correction comes a rotation into new leadership sectors and companies with new and innovative products.  With biotech stocks breaking out left and right while the overall market continues a steep correction, perhaps its time for biotechs to shine.  The next round of market high flyers just may come from the biotechs.  Below is a look at the Biotech Holders ETF (BBH) and as you can see it’s been moving sideways for more than 2 years following a run up of more than 50% at the beginning of 2005.  It is very close to breaking out of this multi year consolidation.  Past biotech leaders such as Genentech (DNA), Genzyme (GENZ), Celgene (CELG) and Amgen (AMGN) should do well but keep an eye on younger, smaller, more innovative companies for the explosive profits.

With inflation rising and the Fed not expected to do anything about it anytime soon, Gold should continue moving higher.  The iShares Gold Trust ETF (IAU) broke out last week and looks poised to test all time highs.

The Market Vectors Nuclear Energy ETF (NLR) offered the first chance to get in on a break of a long downtrend back in the middle of February and again on a break of a longer downtrend in May.  It quickly moved up more than 10% following that breakout and reached oversold levels in the short term.  It needed a breather and got it this month as the market digested gains.  NLR has retreated around 10% and is currently testing a very strong level of support where the upward trend off the March lows and the 50 day moving average converge.  Considering Nuclear will have to be a larger part of our energy strategy, particularly if McCain is elected, NLR could eventually have the kind of run that other commodities have had.