Here are the biotechs that have been 'slaughtered' in the past 5 trading days. Tuesday: ILMN, Friday:ESPR, BIIB, AMGN, ALXN, Monday(yesterday):MYL, ADXS. The one-day percentage drops in these stocks are of the order of 10%+ in almost all cases. Any thoughts as to "what's going on here"? Is the start of a massive bubble burst in biotech land?
Yesterday was a scary day in the markets, to me. I follow several sector leaders, and across the board (virtually) the morning started off with a significant gap down. Over the rest of the day almost none of them went back upwards and closed the gap. It's as if 'something snapped' yesterday.
I also wish to note that for nearly a month my set of sector leaders have been telling a very different story that the S&P 500 or VTI. I see serious breakdown of price patterns and trend violations. I feel this market is in trouble.
How will biotech escape? This is rhetorical question. I mean to suggest that long positions in biotech are now very vulnerable to a market-wide shift in psychology/sentiment.
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