Here is the tweet from Hillary Clinton that started a major sell off in biotech stocks today. It’s funny in a sense because this woman would need to be nominated, then win the Presidency and then get it through Congress. It does however give you a wonderful read on how fragile and knee jerk this market can be at any given time.
Below is 10 minute chart of IBB. Note the upper left of the chart, that’s when her tweet came out.
You guys know I love my biotech, but there is a time for everything. Although this sell off will probably result in a strong snap back rally, I’m not that interested. Overall lately the action has been bad and as you can see in the chart below the uptrend snapped today and did so on big volume. If the sector was that strong to begin with, Hilliary wouldn’t have knocked it down 4.5%..its biggest selloff in a while.
Here’s the daily chart of view of the trend break, notice the volume. It did hold the 200 day moving average, but the trading n the days ahead should e volatile both ways.
It remains to be seen how much of an effect this will have on the Nasdaq. Stay tuned.
See you in the morning.