Todd Harrison: Is the Biotech Bubble About to Burst?

By Todd Harrison  JAN 28, 2014 10:48 AM

If the past is a prologue, we would be wise to pay attention.


Editor's Note: Todd posts his vibes in real time each day on our Buzz & Banter.

It's Turnaround Tuesday on the Street of Dreams and the bulls hope it lives up to its billing. After a string of disappointing sessions—an unfamiliar dynamic for those trading five years or less—we power up this pup for the second set of our five-session string.

While the focus is on Apple's (NASDAQ:AAPL) disappointing holiday quarter, one stock does not a market make, especially in this environment. As such, we'll start the day with a Random Fray, in no particular order:
Chart of the Day
We have, over the years, served up some meaty “bubble comparison charts” to provide perspective on a particular stock, index, or asset class.  There have been times it proved early—such as Apple in February 2012and other times it was spot on, such as The Gold Scold on September 7, 2011 (in and around gold $1,900).

We turn our attention today to the biotech complex, which has been on a white-hot tear since the market bottom in 2009, rallying 333% vs. 177% in the S&P.  We track the index below using the IBB, which is the iShares NASDAQ Biotechnology ETF (NASDAQ:IBB).

A kind thanks to Michael Sedacca, who assisted with the chart.

Click to enlarge


Twitter: @todd_harrison

No positions in stocks mentioned.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at

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