Smaller Cap Biotechs In Major Correction
All the major indices are down in the 1.75% range and now the NASDAQ at 2902 is 100 pts. away from the elusive 3000 level. Analysts have been warning about a correction for weeks but with many indices up 10-15% YTD profit taking was inevitable. Driving prices lower were concerns about $550B of European Debt (esp Greece), higher energy prices, war talk on Iran, weakness in materials, industrials, and energy related to slowing growth in China and lack of DOW theory confirmation of the transportation average (up only 2.1% YTD before today). The IWM ($78.55) down 2.25% iShare Russell 2000 Index ETF has been flat for over one month reaching a 2012 high of $8303 on Feb 3.
Biotech speculation and overall frothiness is being rung out with the IBB down 2.44% today and off its 2012 highs of $122. Expect support at $115 then $110 if correction continues. Our mid-cap biopharma index is off 3.77% with DynaVax (DVAX $4.16) up 1.96% (smaller Q4 loss), and Human Genome Sciences (HGSI $7.55) up 4,55% the only green Within The Rayno Life Science Portfolio is down 2.2% with Abaxis (ABAX $26.82) and Response Genetics (RGDX $1.94) in the green.
Oncothyreon (ONTY $4.94) was down 41% on delay of Lung Cancer trials data till 2013.
Large caps Amgen (AMGN), Biogen (BIIB) and Gilead (GILD) are more stable down a little over 1%. The QQQ with good weighting in large cap biotech is also down 1.11%. AAPL is holding near the $530 level after a sell-off down as low as $516.