I continue to be very uneasy about the market and believe it could begin trending lower at any time, so my natural inclination is buy inverse exchange-traded funds (ETFs). These are baskets of stocks that move higher when the market moves lower.

I gave you a great inverse ETF a couple of weeks ago, ProShares UltraShort S&P 500 (NYSE: SDS). I recommended this ETF because my systems were telling me then, and they continue to tell me now, that this market could move lower in the near term -- perhaps a lot lower. But, what did the market do last week? It moved high enough to stop us out of the SDS trade.

But remember: I am a rules-based investor. I have rules for getting into a position and rules for getting out. The rules for getting in are still flashing "Short!" But just because I have a rule that tells me when to short the market, it doesn't mean that I ignore my rules for getting out of a trade.

There is an old saying that the market can remain irrational longer than you can remain solvent. One of these days, the market's trend will reverse and I am afraid that it will not be a happy ending.

But, that may not happen today, or this week or this month (probably). The market is saying, "Eat, drink and be merry, for tomorrow will undoubtedly never come." No one knows when the day of accounting will come. My forecasting systems indicate it could start this December -- maybe sooner.

Indeed, if the market does actually begin to roll over this coming week, I will personally, be looking to pick up some SDS shares. In the meantime, I like the way my top-rated stock -- this week's Trade-of-the-Week pick -- is performing in a market that seems to defy gravity.

[To receive free trading recommendations before the market opens each week from either Dr. Melvin Pasternak or Mike Turner, go here to sign up, risk-free.]

Let's look at my pick for this week, Gilead Sciences Inc. (Nasdaq: GILD).

 
To begin with, the bio-tech world tends to run on its own steam. True, it cannot completely ignore the broader markets, but when a fundamentally and technically strong stock like GILD bubbles to the surface, I do not want to ignore it.

GILD is a global player in the field of biotechnology and biopharmaceutical research, development and production of life-saving drugs and therapeutics. The company, based in Foster City, California, has just about everything that I look for in a company and, by extension, its stock.

The fundamentals for GILD are very strong. Those with the largest impact include:

The technical indicators for GILD are nearly perfect. Here are some of my technical observations:

Action to Take --> If you're interested in making this trade, consider buying GILD with a limit order at $37.96. I also recommend placing a stop-loss at $35.94 for downside protection. My target price for this trade is $47.00, which would lead to a gain of more than +28%.

-- Mike Turner

www.turnertrends.com