Markets began the new week with both the S&P 500 and Nasdaq falling with a late afternoon decline leaving them off .2 and .3%. Materials led the way Monday with some big moves in some of the XLB components suggesting the greenbacks recent downturn may turn out to be something more than temporary. It is a very crowded trade and as I scoured through some of the names last week it seemed deflationary fears were still persisting with FCX sporting a better than 7% dividend yield (its back to 6.5% as of today with todays 5% jump). AA and X are still off by 27 and 48% respectively. The lagging Nasdaq was only briefly in positive ground today and was certainly hurt by the action in the biotechs. The IBB fell 2.25% Monday after Fridays negative shooting star candle from all time highs. Standout in the group CELG gave back almost half of last weeks 9% plus weekly gain today although volume was well above normal but 5 million shares less than Fridays session. Other names like BLUE lost 4% Monday and ISIS has dropped more than 10% in the last 2 sessions. AGIO lost 8% the last 2 sessions after meeting resistance at its 50 day SMA last Friday. Below is a chart from last Thursdays Game Plan and if par is taken out to the downside the narrative suggested is all but dead.
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