A takeover of Kite Pharmaceuticals (KITE) by Gilead Sciences (GILD) is boosting the biotechnology sector across the board and that is providing some support, particularly for the Nasdaq. Breadth is running about even, but the S&P 500 is lagging and the Russell2000 ETF (IWM) was sold sharply after gaping up.
Biotechnology is typically a good group for leadership, as it tends to be more speculative and shows that there is an appetite for risk. In this case, it doesn't look like the group has coattails. Traders are trying to catch some quick sympathy moves in names like Juno Therapeutics (JUNO) , Bellcum (BLCM) , Bluebird Biotech (BLUE) , Immunomedics (IMMU) and others.
Outside of the biotechnology group, I continue to dislike the action I am seeing in individual stocks. There just isn't much on my radar. I've added to an index short in the form of Direxion Daily S&P Bear 3X (SPXS) and will build that further on intraday lows.
The key to dealing with this environment is to keep an open mind, stay patient and not force things. While I have a negative bias at the moment, I will be happy to change my mind and build some long positions if the chart develops.