Last week I pointed out that the Biotechs looked like they would lead if we went higher, because they were holding up so well into the meltdown. QDEL, AUXL and BBH were my longs at the time.

I mentioned BBH (an ETF) and Eric mentioned IBB (an ETF with wider representation) in the comments. I bought both and Twittered the buys last week.

Today, we get a major reason for their strength. Genentech (DNA), the largest component of the index is getting a bid from Roche for the stock they don’t own .

Great – now the French are the leaders in cancer research. That does not make me feel all warm and fuzzy, but the foreign buyouts will continue as our dollar weakens.

If the credit markets improve, expect hundreds of gigantour deals.