The stock market registered its second consecutive decline on Tuesday with the S&P 500 retreating 0.6%. Equity indices traded near their flat lines through the first half of the day before sliding to lows during afternoon action. All ten sectors finished the day in negative territory with technology (-0.3%) registering the slimmest loss.
Health care—slumped during afternoon action after showing early strength that was fueled by biotechnology. (IBB 355.95, -2.33) was up more than 1.0% in the early going, but settled lower by 0.7% to extend this week’s decline to 2.9% and now down 5.3% from Friday’s intraday highs.
We saw some profitable stop outs today on some of our remaining biotech names: ESPR +53.0%, BMY +7.0% and CLDN +31.7%.
There exists and interesting tug and pull in the Nasdaq right now as technology is showing signs of strength, but biotech is showing weakness. It will be interesting to see who carries the most weight going forward over the short term.
I have one new name tonight.
Wayfair (W) -went public in December. It offers approximately seven million home products under various brands. The companys brands include Wayfair.com that focuses on offering home furnishings and décor from the low to high end.
As you can see in the chart below, it has formed a nice base (rounded bottom) and looks like it may be ready to stage a move higher. Buy the
