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Post by babaoriley on Mar 24, 2014 9:19:18 GMT -5
Looks like a repeat of Friday's debacle for the index. ^BTK
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Post by ashiwi on Mar 24, 2014 10:19:56 GMT -5
At least MNKD seems to be bucking the trend.
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Post by spiro on Mar 24, 2014 11:50:23 GMT -5
From Wall Street journal blogs.wsj.com/moneybeat/2014/03/24/investor-concern-mounts-as-biotech-stocks-continue-slide/11:07 am Mar 24, 2014 MARKETS Investor Concern Mounts as Biotech Stocks Continue Slide ARTICLE By MATT JARZEMSKY Looks like Friday’s weakness in biotechnology stocks was more than a 24-hour bug. The sector is taking another hit today, leaving traders and analysts wondering whether these stocks’ rally the past year has fund managers looking to take profits off the table. Bloomberg Biogen Idec Inc.BIIB -3.23% slumped alongside Gilead Sciences Inc.GILD -0.29% and Celgene Corp.CELG -2.08% Monday morning, underperforming the broader market. The iShares Nasdaq BiotechnologyIBB -3.35% exchange-traded fund, which tracks the sector, slid and the biotech-heavy Nasdaq Composite Index underperformed other broad market benchmarks. As of late Monday morning, the two-day session slide in the biotech-sector ETF amounted to 8.3%. Friday’s 4.7% drop alone marked the biggest daily decline in the ETF since August 2011. “The level of volatility is increasing and investor concern continues to go higher,” RBC Capital Markets analysts write in a research note dated March 23. “Sentiment is waning the most we’ve seen in the last [two to three] years.” Traders and analysts blamed Friday’s selling on a letter from three Democrats on the House’s Energy and Commerce Committee requesting a briefing with biotech bellwether Gilead on the high price of a new Hepatitis C drug. A bigger question is whether a herd of “generalist” investors—who buy shares across many industries, rather than focusing solely on biotech—have piled into the shares of late and are now taking profits. Market participants who follow the biotech industry say some of these investors may be less up-to-date on the science, market risks and trading dynamics of the highly specialized biotech sector. “We think the generalist money is sitting on a lot of profit and is ‘getting spooked’ because of ‘government’ starting to raise questions about drug pricing,” RBC says. For what it’s worth, the bank added it thinks the Gilead pricing concerns are just “headline noise.” The biotech-sector ETF is still up 53% the past 12 months, well ahead of the 19% advance in the S&P 500.
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Post by babaoriley on Mar 24, 2014 12:12:46 GMT -5
Timing just couldn't be better - LOL! Are locusts going to descend on Valencia tomorrow?
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