Nasdaq Biotech Index Crucified, Falls Most Since August 2011

Tyler Durden's picture


Yesterday's "best day in a year" was the ultimate Fed cat bounce as Nadaq Biotech stocks are collapsing today - approaching the crucial 20% bear market drop. With a loss of over 5.5%, this is the biggest drop since August 2011 and has the index very close to the critical 200-day moving-average support. The Biotechs are now down 2% year-to-date at new 4-month lows.



Charts: Bloomberg

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Thu, 04/10/2014 - 13:42 | 4644053 ApollyonDestroy
ApollyonDestroy's picture

Crash and burn bitch!!

Thu, 04/10/2014 - 13:45 | 4644065 knukles
knukles's picture


sniff sniff

Thu, 04/10/2014 - 13:48 | 4644085 aVileRat
aVileRat's picture

I love the smell of burning HFT's in the morning. Smells like victory.

Sleep with one eye open this weekend, things are starting to look fun and you don't need a stuffed shark in your lobby to figure that out.

I would  not be shocked if multi arb/biotech/tech/growth and signal funds are going to get a retarded high margin call or push to dump on margin-monday next week.

In short: if your bosses boss is not sweating yet, rest assured, I am going to bet they are going to be doing the "oh fuck" when they push the house books to the Prime's on Friday.


Thu, 04/10/2014 - 14:18 | 4644202 graneros
graneros's picture

A bit early for a victory lap. The 3:30 ramp (which will probably start earlier today) is about to get under way. Tomorrow's Friday and they certainly can't let the markets head red into the weekend.  Hopefully I am wrong but optimism is not my long suit lately.

Thu, 04/10/2014 - 13:43 | 4644059 ApollyonDestroy
ApollyonDestroy's picture

Then blow shit up in east Ukraine and blame the Russians for the crash. Good plan boys

Thu, 04/10/2014 - 13:44 | 4644063 slaughterer
slaughterer's picture

What?  Gartman told me to BUY biotechs!

Thu, 04/10/2014 - 13:45 | 4644069 oklaboy
oklaboy's picture

that's gonna hurt.....

Thu, 04/10/2014 - 13:45 | 4644070 Cangaroo.TNT
Cangaroo.TNT's picture

For cripes sakes, Tylers.  Didn't you get the memo that you are not allowed to use terms such as "crucified," "plunges," "slammed" et al in your headlines?

Thu, 04/10/2014 - 14:23 | 4644223 Fuh Querada
Fuh Querada's picture

biotechs BUGGERED......

Thu, 04/10/2014 - 13:47 | 4644083 mattgallis
mattgallis's picture


Thu, 04/10/2014 - 13:48 | 4644088 mattgallis
mattgallis's picture


Thu, 04/10/2014 - 13:51 | 4644106 A_Nejad
A_Nejad's picture

I am thinking if I need to arrow this up, or not... ;) Breath man, breath...

Thu, 04/10/2014 - 13:49 | 4644091 A_Nejad
A_Nejad's picture

Bleed Mother fucker, bleed!!!

Thu, 04/10/2014 - 13:50 | 4644094 fonzannoon
fonzannoon's picture

"With the Dow and S&P enjoying a bit of a bump this week, noted stock picker Bill Miller said he believes the bulls will be running hard for the foreseeable future.

"The conditions for a bad market just don't exist," Miller said Wednesday on CNBC's "Closing Bell." "I think after this correction you can throw a dart at the market and about anything you hit is gonna go up the next six months."

Thu, 04/10/2014 - 13:52 | 4644108 Dr. Engali
Dr. Engali's picture

Bill should have hung it up a long time ago while he still had a name for himself. Instead he will be remembered for hanging on past his prime like and aging football player who thinks they have one moar season in them.

Thu, 04/10/2014 - 13:56 | 4644117 fonzannoon
fonzannoon's picture

Doc...whaddaya think? Are we in a new market where it is just nasty chop both ways while sheep get sheared all over the place? Or is this just some pre European QE dip that will be bought violently. The permabear in me says the game is changing.

Thu, 04/10/2014 - 14:04 | 4644138 Dr. Engali
Dr. Engali's picture

The game is changing, but I don't think that they are letting the markets turn south. In my opinion they are busting the tech bubble while still supporting the markets. I rotated clients into mega cap dividend payers a while back and I barely notice a difference in their account balances. The selling seems too controlled to me. It is pretty fascinating to watch the fed pop the tech bubble and drive treasuries lower while tapering.

Thu, 04/10/2014 - 14:08 | 4644161 fonzannoon
fonzannoon's picture

the problem that i think exists is that those megacaps are the last stop on the bus. if people decide they would rather own a bond fund than INTC at 27 and these other mega caps at nosebleed valuations, you have a violent spillover into bonds. so you either have to consider frontrunning that move (into bonds) soon, or hope that things come back around and people step back into equities. tough call to make. just my 2 cents.

Thu, 04/10/2014 - 14:15 | 4644187 Dr. Engali
Dr. Engali's picture

It is a tough call, but the question becomes does the fed abandon the wealth effect therefore leaving the market on it's own? Seems like they wasted a lot of digital currency to jump ship on that idea now. There are so many variable that it is hard to tell. Obama's MyRas and Goldman's recent moves are a lot to ponder.

Thu, 04/10/2014 - 14:20 | 4644210 fonzannoon
fonzannoon's picture

throw in the stuff with Russia....all seems to be heading in a certain direction. wonder if it's time for those myra's to get funded.

Thu, 04/10/2014 - 14:49 | 4644319 object_orient
object_orient's picture

Thanks for the dialogue. Conversations like this are more thought provoking than the majority of articles here.

Thu, 04/10/2014 - 13:52 | 4644096 new game
new game's picture

hmmm, the waves are coming over the bow and our buckets can only bail so much, captain what do we do?

bail baby bail, bail faster or think and swim.

is this finnnnnnnnnnnnnnnnnnallllllllllllllllllllllllllllllyyyyyyyyyyyyyyyyy


beginning of the plunge to normal valuations?

lower low and so forth?

luving that 30 and ten today!

Thu, 04/10/2014 - 13:53 | 4644110 buzzsaw99
buzzsaw99's picture

the fed luvs these pump and dumps. smells like victory.

Thu, 04/10/2014 - 13:53 | 4644111 Frank N. Beans
Frank N. Beans's picture

why the focus on biotechs? 

it's not the only sector dropping


Thu, 04/10/2014 - 14:02 | 4644136 Frank N. Beans
Frank N. Beans's picture

because their p/e is so freaking high dummy

Thu, 04/10/2014 - 14:02 | 4644139 Frank N. Beans
Frank N. Beans's picture


Thu, 04/10/2014 - 14:14 | 4644195 new game
new game's picture

u beat me to it...

ah but many more with pe's 20's with valuation unsusstainable. first the rotation to solid blues and sap divy stocks and utilities, never fails... then earning in a slowing growth world, then the next leg down. s and pee wee 1550 by summer end...

Thu, 04/10/2014 - 13:54 | 4644113 Dr. Engali
Dr. Engali's picture

Tis but a scratch.

Thu, 04/10/2014 - 13:57 | 4644122 fonzannoon
fonzannoon's picture

remember when I told you 3d printing was not in a bubble? Those were good times. 

Thu, 04/10/2014 - 14:00 | 4644129 syntaxterror
syntaxterror's picture

Oh my... this selloff is absolutely brutal:



Thu, 04/10/2014 - 14:06 | 4644152 Itchy and Scratchy
Itchy and Scratchy's picture

Need cure for selling!

Thu, 04/10/2014 - 14:08 | 4644158 Roger Shermanator
Roger Shermanator's picture

Biotech or Bitcoin?  It's a race to the bottom bitchez!!

Thu, 04/10/2014 - 14:08 | 4644160 Yen Cross
Yen Cross's picture

  Bitcoin is down %10 percent today. Under $400.00 the last time I checked.

Thu, 04/10/2014 - 14:21 | 4644209 Charles Nelson ...
Charles Nelson Reilly's picture

last I heard, Fonestar was in the corner of his room sucking his thumb, rocking back and forth....

Thu, 04/10/2014 - 14:33 | 4644260 goBackToSleep
goBackToSleep's picture

too bad foney didn't go with any one of these in the green, they're up!

Thu, 04/10/2014 - 14:08 | 4644164 Ness.
Ness.'s picture

Bouncy, bouncy.  You guys know the drill.  Stocks already heading higher.  Alot of time before the close and 3:30 rampapaloosa. The FED's last and only affective tool is keeping equities afloat.  They will not be denied.

Thu, 04/10/2014 - 14:28 | 4644237 BigRedRider
BigRedRider's picture

Brakes is gone Weezie!! "Weeze fweewheelin!"

Thu, 04/10/2014 - 17:55 | 4645112 syntaxterror
syntaxterror's picture

Still up over 38% over the last year. Was up 70% for 2013. A 6% drop is nothing. Still radically overpriced.

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