Biotech investors can’t seem to get any relief from the selling pressure that has plagued the sector throughout 2016. Heading into the last few trading days of the year, biotech stocks appear to be closing 2016 on a low note.
Biotech stocks are having another tough day Thursday. In the past five trading sessions, the iShares NASDAQ Biotechnology Index (ETF) IBB 2.11% is down 2.0 percent and the SPDR S&P Biotech (ETF) XBI 3.46% is down 3.6 percent.
The move has been even more exaggerated in levered biotech ETFs. The Direxion Daily S&P Biotech Bull 3X Shares LABU 10.85% is down 10.4 percent, while the Direxion Daily S&P Biotech Bear 3X Shares LABD 10.54% is up 10.6 percent.
Run-Up To The Election, Then A Slide
Biotech stocks initially got a big boost when Donald Trump prevailed on Election Day. However, in a December interview with Time, Trump definitively said, “I’m going to bring down drug prices.” That statement rattled biotech stocks, which have since failed to recover.
Rising interest rates may also be weighing on the sector as well.
However, biotech weakness in the closing days of the year may also be…
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!