Tech Wreck Part 2? Or Just Profit Taking.
Sector Rotation Away from Large Cap Growth (QQQ) to Value (XLF)
Tech and biotech stocks were hit from sector rotation with the NASDAQ down 2.18 % to and the QQQ down 2% to $136.75 as of mid-day trading. This is the second hit in June for the Qs near its 52 week high of $144 in early June. On Tuesday we suggested that holders of the meteoric XBI “take a little off” as shares were up 34% YTD.
Financials (XLF) and energy (XLE) lead the market today although they are barely up, whereas market leaders, technology (XLK) is down over 2% and healthcare (XLV) down over 1%.
Biotechs recovered a bit yesterday despite delays of “ACA replace and reform” but are being hammered across the board today with many 3%+ losers among mid and large caps.
After a great month in biotech, FANG stocks over owned and many fund books are closing out the month. A big JULY 4th holiday ahead makes it a good day to trim positions.
Update tomorrow on biotech stocks.