Not too many sectors can claim that they made new all-time highs after the worst bear market that most of us can remember just a few short months after the broader market bottomed.

The higher stocks in general go, the louder the predictions for disaster will be. But before we circle the months of September and October on our "End of Days" calendar, let's take a look at three biotech plays that should continue to move the Amex Biotechnology Index (BTK).

Before we get started, though, let's review the BTK.

A Look at the Amex Biotechnology Index

As you can see from the chart below, the BTK has broken out from an ascending triangle to new all-time highs.

The ascending triangle has rules that govern its shape:

• The tops of the waves peak near the same price, following a horizontal trendline.  
• The bottoms of the waves generally follow an up-sloping trendline.
• Five waves compose the ascending triangle (A-B-C-D-E), unless extended.
• Each of the A-B-C-D-E waves is composed of three sub-waves, so it has a 3-3-3-3-3 configuration.
• Volume and volatility tend to recede over the life of the pattern, but this is not a requirement.

Here now are the three stocks I think are the best in breed in the biotech sector.