Market Sell-Off Over 2%-Worse Day Since August 2010
Yesterday’s rally was obviously a good hangover from your Memorial Day weekend. The bad economic news has finally come to roost and the selling today is ominous because it is the first day of the month. Over the past month we cautioned that with the market, particularly biotech being up 15%, it is prudent to raise cash say 10% or even more. Before we review the life science sector performance today note that overall financials are among the weakest sectors and gold is the strongest with 10 year treasuries dipping down to 2.94% yield and the TLT is up 10% since early February. But we have seen nervousness before this year and the market springs back as the money apparently has nowhere else to go especially with large cap stock yields at 3% or better.
Macro metal site like gold.
Among life science stocks the damage was not as bad as the S&P particularly FBT down 1.19% and IBB down 2% (see our biotech ETF article). However many high flying biotech stocks propelled by hedge funds were down over 5%.The Rayno Life Science Portfolio was down 1.57% with some green: ALXN up 1.56%, AMRI up 1.99%, ILMN up 0.76% and SRLS up 0.28%.
The pre-ASCO selling has begun, but one day does not make a trend.