B iotech Sector Momentum Quits-IBB at Support Level of $189

NASDAQ Off 1.73% to 3605

Have fund managers raised cash and gone on vacation? Moreover many weaker sectors have  become leaders like gold, silver,materials and energy. Walmart and Cisco are leading the way down against a back drop of stronger economic data.Over the past five days the IBB is selling off faster than the NASDAQ -100 (QQQ) down 6% compared to down  2% for the QQQ.

Here are some other important trading trends as of 3:35p Thursday:

MO “bubble boy” Aegerion (AEGR $87) is off 5% today on decent volume, and 9 pts off Tuesday’s high of $96.Fidelity owns a huge position at least 12.6% of the stock.

Alexion (ALXN $105) also shows a failed summer rally off highs of $117.

Biopharma leader Regeneron (REGN $244) is down 14% over 3 mos. and failed the August rally to $280.

Almost every biotech stocks is in the red down 2% or more. The ETF XBI ($115.84) is down 2.78% today. Many mid-caps are being crushed.

Most dx and tools stocks are down but we would look for adding more Illumina (ILMN) on weakness.

Treasury yields are at new highs of 2.75%.

Gold is up $29.60 to $1363.

Caution is back, no new positions, 10% cash.

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