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Welcome to the Biotech Bear Market
A look at the market action following the big NFP report.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Let's take a look at what's moving in terms of sectors on what is turning out to be a very ugly NFP day.

This morning, the homebuilding stocks were firmly in the green -- now they're barely hanging in there. iShares Dow Jones US Home Construction ETF (NYSEARCA:ITB) was up 2.3% at one point this morning, but it couldn't hold.



Biotech is getting destroyed once again, and the iShares Nasdaq Biotechnology Index ETF (NASDAQ:IBB) just went negative on the year as it broke the 2013 close of $227.06.

At the top on February 25, it was up 21.3%!



The other major biotech ETF, SPDR S&P Biotech (NYSEARCA:XBI), is just a hair above going red year-to-date.

That one was actually up 32.5% at its February top! Crazy!



My other favorite risk proxies -- cannabis play GW Pharmaceuticals (NASDAQ:GWPH), fuel-cell names Plug Power (NASDAQ:PLUG) and FuelCell Energy (NASDAQ:FCEL), and the Global X Social Media ETF (NASDAQ:SOCL) -- are all getting smashed.

The Utilities SPDR ETF (NYSEARCA:XLU) is doing quite well, up 1.1%. (By the way, if you haven't been following Michael Gayed's work on utilities, I strongly suggest you do. They've been going straight up this year.) In the next chart, I plotted it against the Russell 2000 (INDEXRUSSELL:RUT) -- it's a pretty good illustration of how much things have shifted as the market is grinding higher. Big Pharma names have also done pretty well.



The bulls have quit pressing the bets that worked best in 2013, namely, biotech and social media.

I don't necessarily like the breakdown in high-beta. However, I do think some cooling off is healthy ahead of earnings season so we can repeat the theme from 2013 -- low expectations as measured by terrible guidance, followed by companies clearing the lowered bar.

For now, hold fast!

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Welcome to the Biotech Bear Market
A look at the market action following the big NFP report.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Let's take a look at what's moving in terms of sectors on what is turning out to be a very ugly NFP day.

This morning, the homebuilding stocks were firmly in the green -- now they're barely hanging in there. iShares Dow Jones US Home Construction ETF (NYSEARCA:ITB) was up 2.3% at one point this morning, but it couldn't hold.



Biotech is getting destroyed once again, and the iShares Nasdaq Biotechnology Index ETF (NASDAQ:IBB) just went negative on the year as it broke the 2013 close of $227.06.

At the top on February 25, it was up 21.3%!



The other major biotech ETF, SPDR S&P Biotech (NYSEARCA:XBI), is just a hair above going red year-to-date.

That one was actually up 32.5% at its February top! Crazy!



My other favorite risk proxies -- cannabis play GW Pharmaceuticals (NASDAQ:GWPH), fuel-cell names Plug Power (NASDAQ:PLUG) and FuelCell Energy (NASDAQ:FCEL), and the Global X Social Media ETF (NASDAQ:SOCL) -- are all getting smashed.

The Utilities SPDR ETF (NYSEARCA:XLU) is doing quite well, up 1.1%. (By the way, if you haven't been following Michael Gayed's work on utilities, I strongly suggest you do. They've been going straight up this year.) In the next chart, I plotted it against the Russell 2000 (INDEXRUSSELL:RUT) -- it's a pretty good illustration of how much things have shifted as the market is grinding higher. Big Pharma names have also done pretty well.



The bulls have quit pressing the bets that worked best in 2013, namely, biotech and social media.

I don't necessarily like the breakdown in high-beta. However, I do think some cooling off is healthy ahead of earnings season so we can repeat the theme from 2013 -- low expectations as measured by terrible guidance, followed by companies clearing the lowered bar.

For now, hold fast!

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
More From Michael Comeau
Welcome to the Biotech Bear Market
A look at the market action following the big NFP report.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Let's take a look at what's moving in terms of sectors on what is turning out to be a very ugly NFP day.

This morning, the homebuilding stocks were firmly in the green -- now they're barely hanging in there. iShares Dow Jones US Home Construction ETF (NYSEARCA:ITB) was up 2.3% at one point this morning, but it couldn't hold.



Biotech is getting destroyed once again, and the iShares Nasdaq Biotechnology Index ETF (NASDAQ:IBB) just went negative on the year as it broke the 2013 close of $227.06.

At the top on February 25, it was up 21.3%!



The other major biotech ETF, SPDR S&P Biotech (NYSEARCA:XBI), is just a hair above going red year-to-date.

That one was actually up 32.5% at its February top! Crazy!



My other favorite risk proxies -- cannabis play GW Pharmaceuticals (NASDAQ:GWPH), fuel-cell names Plug Power (NASDAQ:PLUG) and FuelCell Energy (NASDAQ:FCEL), and the Global X Social Media ETF (NASDAQ:SOCL) -- are all getting smashed.

The Utilities SPDR ETF (NYSEARCA:XLU) is doing quite well, up 1.1%. (By the way, if you haven't been following Michael Gayed's work on utilities, I strongly suggest you do. They've been going straight up this year.) In the next chart, I plotted it against the Russell 2000 (INDEXRUSSELL:RUT) -- it's a pretty good illustration of how much things have shifted as the market is grinding higher. Big Pharma names have also done pretty well.



The bulls have quit pressing the bets that worked best in 2013, namely, biotech and social media.

I don't necessarily like the breakdown in high-beta. However, I do think some cooling off is healthy ahead of earnings season so we can repeat the theme from 2013 -- low expectations as measured by terrible guidance, followed by companies clearing the lowered bar.

For now, hold fast!

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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