Panic selling has eased after European market closes but we are still down 3%. 10 Year treasuries are under 2.5%.Banks cannot handle the flow of money to safety and may actually charge for opening an account. Gold is selling off $1654 down $6.60 on rumors of a margin increase and profit taking. The FTSE-100 is down 3.43% and with Trichet apparently reversing his position of raising rates. The focus now shifts to Europe. Indeed global growth prospects have been cut for H2 and we still have tomorrow’s job data to confront.
One key mark for the NASDAQ is the triple bottom of March and June of 2616 and we briefly touched 2595 today. The healthcare sector continues its sell-off with large cap drugs down less than the market.
There is no point to specific stock analysis. Stocks are tracking the overall trend. Amgen AMGN($53) is off less than 1% so consider that the safety play. Read all about Dendreon (DNDN) off a ridiculous 65% on reimbursement concerns bringing the market cap from over $6B to $1.8B. Who owned the most Dendreon? Top Six as of cheap Lyrica canada 3/31 are SAC Capital,Prime Cap Mgmt., JPMorgan, Vanguard Brookside and Soros. Among the ETF’s XBI plunged 6.9%, IBB down 4.9% and FBT down 7% all perhaps with too much Dendreon. Also per NASDAQ data FMR LLC i.e. Fidelity sold 93% of all DNDN shares in Q1.It will be interesting to see Q2 data in about 2 weeks.
The clue came on July 25th when MO stocks sold off. Case in point ARIA.
Today’s trade is junk food (MCD $85.59, KFT $35.07).