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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ApollyonDestroy's picture

Crash and burn bitch!!

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.


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.

ApollyonDestroy's picture

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

slaughterer's picture

What?  Gartman told me to BUY biotechs!

oklaboy's picture

that's gonna hurt.....

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?

mattgallis's picture


mattgallis's picture


A_Nejad's picture

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

A_Nejad's picture

Bleed Mother fucker, bleed!!!

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."

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.

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.

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.

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.

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.

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.

object_orient's picture

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

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!

buzzsaw99's picture

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

Frank N. Beans's picture

why the focus on biotechs? 

it's not the only sector dropping


Frank N. Beans's picture

because their p/e is so freaking high dummy

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...

Dr. Engali's picture

Tis but a scratch.

fonzannoon's picture

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

syntaxterror's picture

Oh my... this selloff is absolutely brutal:



Itchy and Scratchy's picture

Need cure for selling!

Roger Shermanator's picture

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

Yen Cross's picture

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

Charles Nelson Reilly's picture

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

goBackToSleep's picture

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

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.

BigRedRider's picture

Brakes is gone Weezie!! "Weeze fweewheelin!"

syntaxterror's picture

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