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Lots of meaningless labels. It is musical chairs and the music has stopped for now.
Lots of technical selling as it broke through its resistance as believed by technical traders and programmed in. Front running this behavior would have placed stops at 250-252 for IBB as I had suggested several weeks ago in case it broke the 255 level.
If the markets were to bounce back very bullishly, it may create a reversal for biotech as a rising tide here but the next likely reversal is around another 5% down between 230-235 but if the markets are weak or sideways, may go down to its 200 SMA about 12% down from here where it might be a good buying opportunity for the next cycle. Again, this is not based on any crystal ball powers of TA but rather the herd behavior of technical traders.
Maybe a related article on the headwinds biotech products face due to exclusivity rights:
"One of the signal achievements for the biotech industry in the Affordable Care Act was a provision granting 12 years of market exclusivity to biologics. The decade-plus period of protection against generic competition ensured that biologics would remain center stage in the R&D world, especially as Big Pharma tumbled over the patent cliff as it tried to rethink its megablockbuster-sized budgets for drug development."
Obama Administration would like to reduce the 12 year exclusivity to 7 years to help reduce medicare cost over the next ten years.
Comments
Lots of technical selling as it broke through its resistance as believed by technical traders and programmed in. Front running this behavior would have placed stops at 250-252 for IBB as I had suggested several weeks ago in case it broke the 255 level.
If the markets were to bounce back very bullishly, it may create a reversal for biotech as a rising tide here but the next likely reversal is around another 5% down between 230-235 but if the markets are weak or sideways, may go down to its 200 SMA about 12% down from here where it might be a good buying opportunity for the next cycle. Again, this is not based on any crystal ball powers of TA but rather the herd behavior of technical traders.
Traders will be playing financials until then.
"One of the signal achievements for the biotech industry in the Affordable Care Act was a provision granting 12 years of market exclusivity to biologics. The decade-plus period of protection against generic competition ensured that biologics would remain center stage in the R&D world, especially as Big Pharma tumbled over the patent cliff as it tried to rethink its megablockbuster-sized budgets for drug development."
Obama Administration would like to reduce the 12 year exclusivity to 7 years to help reduce medicare cost over the next ten years.
fiercebiotech.com/story/obama-administration-looks-chop-back-market-exclusivity-biologics/2014-03-06#ixzz2wbxniOab