Today was a strange post-holiday session as US markets really just keyed off of a weak dollar and higher commodity prices. $70+ on oil and $1,000+ gold were a highlight, but all in all this was merely the U.S. playing catch-up on gains after we had an extra day off.

Here were today's unofficial closing bell figures:

Dow 9,497.34 +56.07 (0.59%)
S&P 500 1,025.37 +8.97 (0.88%)
Nasdaq 2,037.77 +18.99 (0.94%)

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Biotechs are fascinating. They have such great promise, yet very few of them actually turn those promises into money. Cures for all types of cancers always seem imminent with promising (there's that word again) results from mice or small control groups. Phase I testing is completed and all kinds of good stuff seems possible. Then something usually happens. Usually not very good things.

Most of the time, it's discovered that what works in mice doesn't work in men (or women). Or that the group was too small for meaningful data and when a larger group is studied, the efficacy isn't there. Or as soon as there's a bounce in the stock price, much more stock is issued and dilution occurs.

Venture capital funds found 612 companies in which to invest $3.67 billion in Q2. Of this, $1.5 billion (41%) was first-time financing, according to a report by PricewaterhouseCoopers and the National Venture Capital Association. This is only slightly ahead of the action in Q1, in which 141 transactions were first-time, and far behind the pace we enjoyed earlier this decade.

The biotech sector was the big winner in a shrinking market, with funding up 54% to $888 million over 85 deals. The software business was flat quarter-over-quarter at 4644 million over 135 transactions. Investments in internet companies fell 15% to $524 million via 124 deals. Clean technology showed considerable growth, up 15% to $274 million, with 42 transactions closed.

Venture capital firms Braemar Energy Ventures and Lightspeed Venture partners led the Series C round for Solazyme, Inc., putting $57 million in fresh capital into the company. This brings total outside financing to above $76 million for the algae-derived biofuels company ... and shows yet another sign of life for private investment in green technology.

Solazyme uses microalgae biotechnology for the production of clean fuels, green chemicals, edible oils, and wellness products. The company seeks to "answer the increasing global demand for clean and renewable sources of oil" through sustainable and scalable technologies. The company's renewable oil production process relies on industrial fermentation, in which the algae consume nonfood biomass and industrial byproducts, which the algae converts to oil. End products include renewable diesel, biodiesel, and jet fuel.

When a $7 a share biotechnology company like Dendreon Corp. (NASDAQ: DNDN) rockets 200% to over $20 a share in one day, like it did yesterday after reporting successful Phase 3 trials of its prostate cancer drug, investors get interested in any biotech stock under $10.

But before investing in these speculative companies, you should have a clear understanding of how this niche operates. Marketing plays an important role in order for the companies to raise capital, therefore if you are interested in betting on a company's future, you should consider the risk factors and odds of success.

The Dow's difficult start in 2009, following on the heels of 2008's awful performance, has done little to attract new money into the market. And neither has the U.S. economy, which remains entrenched in a pronounced recession, with few signs that it's bottomed.

The economic conditions invalidate most sectors, but there are a few that offer promise. One is health care, which is why Baxter International (NYSE: BAX) is worth a review.

News events of the day are providing a dramatic illustration that not all biotech companies are the same.

Just as President Obama lifted the executive order banning the use of embryonic stem cells for research, Roche and Genentech (NYSE: DNA) appear to have reached an agreement on Roche's bid to acquire the 44% of DNA that Roche does not currently own.

Shares of biotech companies engaged in stem cell protocols rallied after the Obama announcement. While most of these companies are small in size with stock prices below $2 per share, the announcement gave impetus to price increases of 17% to 100%.

"Celgene (NASDAQ: CELG) reported their fourth quarter and year end numbers which showed strong revenue growth." observes biotech sector expert John McCamant.

The editor of The Medical Technology Stock Letter explains, "We remain excited about CELG's growth prospects and management's ability to deliver the goods.

"Total revenue for the quarter grew 50% to $623 million, with the primary driver being Revlimid sales of $369.4 million. Sales of their two other drugs, Thalomid and Vidaza generated $126.8 million and 69.7 million, respectively.

As an investor, I hate crowds. If a stock or sector that I like attracts a crowd, I know it is time to leave. As they say, the sheep are usually the buyers at the top.

Now, we need sheep to help drive prices of our holdings higher, but at some point it is time to jettison. Nothing goes up forever, and the best signal I have found over the years is to sell when the sheep are buying.

This year the sheep are being told to buy the biotechnology sector.

That advice may be a bit late in coming. 2008 was a disastrous year, but biotechnology did very well. It is that performance that is now attracting the sheep.

After the initial rebuff of Swiss-based pharmaceutical giant Roche's offer to acquire the 44% of Genentech (NYSE: DNA) stock Roche does not currently own, DNA is coyly encouraging the completion of a deal at a higher price.

Genentech is among the leading biotech companies in the world. It is engaged in the discovery, development, manufacturing and commercialization of pharmaceutical products intended for treatment of previously untreatable illnesses.

In 1990, Roche acquired a 56% stake in the company. Since that time, the relationship between the two companies has been a model for similarly structured combinations.

Roche's offer of $89 per share for DNA was characterized by DNA as significantly undervaluing the company.

But this was hardly a "hit the road, Jack" response. DNA's board of directors has been encouraging the two sides to continue discussions, and recent comments suggest that the deal could come together soon.

There were a few stocks in 2008 that exhibited great performance despite horrible market conditions. And these gems of 2008 may provide investors with a safe haven of sorts for 2009.

In fact, we are already hearing analysis of the year to come suggesting that biotechnology stocks will be the place to be for positive returns in the new year.

One such name to consider is Amgen (NASDAQ: AMGN).

Founded in 1980, AMGN is one of the largest biotechnology companies in the market. It has a stable of proven drugs that provides significant profits, and a pipeline of opportunities that should provide reasonable growth in the future.

Shares of AMGN have gained approximately 20% during the last year as investors recognized the value of current profits combined with future growth. Interestingly, the company really gained traction during the second half of the year as the rest of the market was imploding.

Even with the gains, AMGN is a compelling investment story.

Shares trade for 15 times trailing earnings and only 12 times forward earnings. That means you can buy shares for a price-to-earnings ratio that is lower than its growth rate.

One reason for the optimism in the stock in 2008 was the progress made on its osteoporosis drug, Denosumab. Analysts are expecting the drug to be a blockbuster.

Denosumab has done well in trials, and AMGN recently applied for FDA approval to bring the drug to market. Given the expected 10-month FDA review and processing period, AMGN is only a year or so away from the sales benefits of this new drug.

Whether you are a trader or an investor, you were probably as happy as Tom Cruise's "Joel" character in Risky Business to hear the closing bell today. Things were looking so promising this week that the media was pondering whether the bottom of the market had come and gone. That part remains unknown that feeling of bear market rallies has returned. The good news is that the auto snag did not bring about the massive down day as a recovery came in. The retail sales data came in slightly "less-bad" than expected.

General Motors Corporation (NYSE: GM) and Ford Motor Company (NYSE: F) were the two bogeys today. Their fate lies in the chances of NOT going bankrupt, and the cancellation of the bailout from the Senate was only greeted by less selling than one would expected when you saw 20% drops and worse in early trading. The good news is that this did not destroy most stocks as much as many feared earlier today, with GM even managing some gains by the end of the day.

Here are today's unofficial closing bell levels:

Dow 8,629.68 +64.59 (0.75%)
S&P 500 879.74 +6.15 (0.70%)
Nasdaq 1,540.72 +32.84 (2.18%)

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It's been a tough year for many industries -- there's no denying it. Retailers of all stripes, oil companies, construction firms, financials, basic materials companies -- you name it, it's down.

So, are there any safe havens?

Historically, in times of economic uncertainty the pharmaceutical industry, along with consumer staples, is often the "go to" place where, at a minimum, you can count on a nice dividend yield to shield your portfolio from gigantic losses. Not anymore.

In this downturn even stalwarts such as Merck (NYSE: MRK) and Pfizer (NYSE: PFE) trade near their multi-year lows, despite offering generous yields.

What about biotechs? That sector has performed much better.

However, one of my favorite biotech names, Elan (NYSE: ELN), is struggling.

At the start of the year, ELN was looking strong. Its stock was up by 50% by mid-summer. Since then shares have collapsed and now trade in the mid-single digits.

I profiled the company on July 2, with one caveat: If late-stage testing of a new Alzheimer's drug called bapineuzumab doesn't go as planned, then ELN will trade lower.

About a month later, the company announced that the results of a Phase II clinical study showed the drug does safely treat the symptoms of Alzheimer's disease, but the results were not statistically significant, and the 234-person Phase II study would have to be broadened to a much larger Phase III study to be considered for FDA approval.

The shares fell 17% on the announcement, but that was just the start. As is often the case, when it rains, it pours.

This post is part of a series featuring bargain stocks that are worth a look now. See more Cheap Stocks.

Every time I write about Monsanto Company (NYSE: MON), I get e-mails from vocal opponents of genetically modified foods. It strikes me as unusual, if only because there are so many companies out there doing business in an ethically questionable manner, and I'm rarely e-mailed about most of them. But, hey -- I can't blame anybody for being protective of the food supply.

If you're morally opposed to Monsanto, I definitely don't recommend you invest in it. Otherwise, there are valid reasons for taking a closer look at this agricultural chemicals firm. For example, on October 21, S&P Ratings hiked its long-term ratings on MON from "A" to "A+," citing the "expected continuation for favorable business trends ... a very strong market position ... and an impressive pipeline of new products that should underpin strong future earnings and cash flow."

Add sugar cane to the pipeline; Monsanto recently announced its intention to acquire Brazil's Aly Participacoes Ltda for $290 million. With sugar cane emerging as a popular alternative to corn for ethanol production, the acquisition makes sense. Carl Casale, the company's head of global strategy and operations, observed, "... we think that the biotechnology traits that we've invested in [corn] can bring a lot of value to sugar, as well."

"The medical arena has long been my favorite sectors; perhaps the best opportunities within the medical sector will be with companies who provide life-saving products for the treatment of serious diseases," says Dave Dyer.

In The Dave Dyer Newsletter, he explains, "That is why Celgene (NASDAQ: CELG) is an excellent choice in this economy." Here's his look at this "recession-resistant" company.

"Celgene is a multinational biopharmaceutical company with a $29 billion market cap and no debt. Revlimid is their blockbuster drug with multi-billion dollar potential. It was first approved by the FDA in 2005, and it has many good years of patent protection ahead of it.

"Revlimid delays the onset of progression of deadly diseases -- leprosy and multiple myeloma. No wonder it is worth $6,000 per month. It is a close derivative of their other drug Thalomid. This drug was used by another company about 50 years ago to treat morning sickness in pregnant women and caused numerous birth defects.

"Despite a recession, we believe that demand for its products will remain strong. For example, if you have multiple myeloma, you would probably do just about anything before missing a payment for your monthly dose of Revlimid.