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Nasdaq Biotech Index Re-Plunges To 10-Week Lows

Tyler Durden's picture




 

UPDATE: Sure enough the 100DMA was met with buying... for now...

 

The Nasdaq Biotech index is down 4% from earlier opening highs and is once again testing the 100-day-moving-average that provided some impetus for a modest bounce yesterday. This is a 10-week low level (-14% from Feb highs) and has retraced over 60% of the gains since the Fed announced the taper in December. Volume has been very heavy.

 

We suspect we will bounce off the 100DMA once again...

 

but any 3rd break may be the tell that all is not well (as well as the volume below...)

 

As a gentle reminder this all started when Waxman questioned the bubblicious pricing that bubblicious firms like Gilead are pricing for their new drugs...

Letter to Gilead by zerohedge

 

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Tue, 03/25/2014 - 12:44 | 4590490 LawsofPhysics
LawsofPhysics's picture

The insiders continue to sell ahead of 401k money (which keeps on "buying the dip" each month).

 

Tue, 03/25/2014 - 13:21 | 4590694 nuclearsquid
nuclearsquid's picture

nah, something like this is happening:

trade(_100DayBioTechStockA, priceBioTechStockA) {

  if (priceBioTechStockA < _100DayBioTechStockA) {

buy(BioTechSTockA);

}

else {

sell(BioTechStockA);

}

};

 

Tue, 03/25/2014 - 15:43 | 4591396 SheepDog-One
SheepDog-One's picture

Gotta load the suckers with all the bad debt, while convincing them they're getting wildly rich on free EZ money. The takedown will be spectacular.

Tue, 03/25/2014 - 12:48 | 4590502 Ness.
Ness.'s picture

ZH putting in the low (again).  *golf clap*

Tue, 03/25/2014 - 12:49 | 4590512 Dr. Engali
Dr. Engali's picture

Somebody from the industry need to start greasing Waxman's palm.

Tue, 03/25/2014 - 12:54 | 4590533 caimen garou
caimen garou's picture

must be a virus, it's the season for it

Tue, 03/25/2014 - 12:59 | 4590555 Kaiser Sousa
Kaiser Sousa's picture

no worries....

the Dow just did another v-shaped bounce off the lows headed to erasing all losses  - AGAIN.

Tue, 03/25/2014 - 15:48 | 4591422 El Hosel
El Hosel's picture

CNBC says buy the Biotech dip, for the growth....  Demonstrate your "full faith", sell your gold and silver "relics", shares, and principals.

Tue, 03/25/2014 - 13:02 | 4590566 toys for tits
toys for tits's picture

What a bunch of congressional douchebags trying to impose price controls on Gilead in a sneaky way by saying they are getting an advantage because the FDA is speeding up the drug approval process.

 

Congress needs to realize that the drug patents only last 20 years and that exclusivity can be as little as 6 months so a company needs to make as much as possible to recoup the astronomical R and D.

Tue, 03/25/2014 - 13:01 | 4590567 Spungo
Spungo's picture

You know it's bullish when ALL BUT ONE insiders are selling:
http://ca.finance.yahoo.com/q/it?s=TSLA

Tue, 03/25/2014 - 13:03 | 4590576 Bill of Rights
Bill of Rights's picture

WTF Files

Obama: Biggest concern is Manhattan nuke

http://www.marketwatch.com/story/obama-biggest-concern-is-manhattan-nuke...

 

Tue, 03/25/2014 - 15:45 | 4591408 SheepDog-One
SheepDog-One's picture

'Missing' 777 probably being fitted with it right now.

Tue, 03/25/2014 - 13:12 | 4590630 Spungo
Spungo's picture

Get ready for a false flag nuke attack in Manhattan!
/Alex Jones 

Better yet, they'll say they need to take away your right to vote in order to stop this attack.

Tue, 03/25/2014 - 13:31 | 4590709 TheRideNeverEnds
TheRideNeverEnds's picture

Just buy them, buy everything, we are going much higher.

 

Look at the tape, every downtick is met with buyers, entirety of yesterdays down move was erased in the premarket. Ticks pegged at over +800.  S&P retested 1850 and bounced hard off that level.

 

There is so much money chasing this market the chance we trade under 1800 ever again in history is near zero and if you sell them you are going to get blown the fuck out as we head to this years target of 2200 in the SPX.

Tue, 03/25/2014 - 15:48 | 4591424 SheepDog-One
SheepDog-One's picture

Exactly what they want you to think, 'Only a fool wouldn't be all-in here'.....frankly I wouldn't touch it with a found bag of free money. No one ever learns the sowing and reaping cycle....the bumper crop of fools must be harvested from time to time.

Tue, 03/25/2014 - 13:23 | 4590715 Spungo
Spungo's picture

if (1) {
buy(Everything);
return(MoralHazard);

Tue, 03/25/2014 - 13:27 | 4590729 Kaiser Sousa
Kaiser Sousa's picture

well here u have it...

another perfect v-shape reversal on absolutley no fucking news but bad...fucking plain enough for u guys...

http://www.marketwatch.com/investing/index/DJIA

and, of course the sideways trad in the only 2 forms of real money after the phony paper price takedown at preciselt the annointed hours again...

http://www.kitco.com/charts/livesilver.html

Tue, 03/25/2014 - 13:29 | 4590737 jubber
jubber's picture

South Africa only up 800 points on the day now!

Tue, 03/25/2014 - 14:07 | 4590956 Tsar Pointless
Tsar Pointless's picture

Another bottom-tag by ZH.

Hi. Larry. Us.

Tue, 03/25/2014 - 15:42 | 4591392 SheepDog-One
SheepDog-One's picture

Pumping and dumping to the suckers. When they implode this shitcastle one of these days it will be truly spectacular, people will have no idea what happened, and will be left distitute.

Do NOT follow this link or you will be banned from the site!