Hillary Crushes Biotechs

Hillary Crushes Biotechs

by Eddy Elfenbein, Crossing Wall Street

A fairly average day in the market disrupted when Hillary Clinton tweeted this:

The market reacted swiftly. Check out the Biotech ETF (IBB):

hillary crushes biotechs

Don’t feel too bad for biotechs. That ETF is currently at $340. Four years ago, it was going for $94. Biotechs have done incredibly well.

There are a few points to highlight. The first is that anything can impact your stock. The entire biotech sector was hit just from this one tweet.

This is also why I’m leery of stop-losses. Stops can be a useful tool, but bear in mind that you can get knocked out of good positions for silly reasons.

We can also see how one sector can depart from the rest of the market. The overall stock market did fairly well today. Here’s how the ten S&P sectors performed today. See how big the gap is between Health Care and everybody else.

Financials 1.07%
Technology 1.00%
Staples 0.85%
Discretionary 0.75%
Energy 0.57%
Industrials 0.45%
Utilities 0.43%
Materials 0.29%
Telecom 0.26%
Health Care -1.38%

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