The last time US Stocks had a true melt up was late 1990s.

History may be repeating itself... tech companies are growing revenue like gangbusters and investors are eating it up.

During 1998 through 2000 technology stocks in general increased in value by about 200%. However, there was one sector that did even better.

Biotech stocks absolutely soared in comparison growing by 500% over the same time frame.

The potential rewards are worth the risk of being wrong. An easy way to protect yourself from extreme loses is to sell as soon as biotech stocks break their uptrend line.

Over the last 4 months the Nasdaq Composite Index has increase 14% and broke out to new highs

Biotech is building momentum right now as the sector prepares to launch to new all time highs. The outperformance of shares has already started with biotech increasing 21% over the past four months.

To take advantage of this incredible setup you may want to look at buying the ProShares Ultra Nasdaq Biotechnology Fund (BIB). This leveraged fund returns twice the daily return of the Nasdaq Biotechnology Index. The leverage adds volatility to your investment so be prepared for significant changes in price day to day. Once again you can protect yourself from devastating losses by watching the uptrend lines and selling once they are broken. The name of the game is to limit losses and capture as much upside as possible.

Enjoy the melt up. Cheers.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.