The major averages began the week on a lower note as the market pulled back from its impressive finish to the first quarter. Additional factors to today’s decline included a slide in crude oil prices, hawkish remarks from the Boston Fed President, and the underperformance of the technology ,financial, and industrial sectors. The Nasdaq finished the day behind the Dow, and the S&P.
Biotech stocks, among the biggest laggards of 2016, rallied. The Nasdaq Biotechnology Index gained 0.9%, trimming its losses this year to 20%. Many stocks made breakout moves today in the sector.
Health-care companies in the S&P 500 rose 1%, outpacing the rest of the market. EdwardsLifesciences (EW) gained 17% to become the biggest gainer in the S&P 500, after reporting over the weekend positive results in tests of its heart valve replacement. Congrats if you took this one on Friday’s trigger.
Shares of Virgin America soared 42% today after Alaska Air Group said it had reached a deal to buy the carrier.
ACAD, OCUL and BMRN all triggered today and late in the day I added LAD as a short. Some of you may remember the great short we had in this one a couple of months back and now it looks like it may be rolling over again. Target 72-73.
See you in the morning.