A whole host of high valuation stocks are selling off again, a trend that has been persistent for almost two years. In recent weeks, we’ve seen this theme accelerate, hitting some of the old favorite especially hard–like Netflix, Saleforce, Amazon and any number of biotech stocks.
Amazon has been under significant distribution since they missed earnings.
Netflix is now trading with an 8 handle.
Biotech stocks are the worst performers in 2016, with a median return for the industry nearing -30%.
I’ll wrap it up with a picture of my beautiful ‘Bubble Basket’, which is domiciled inside Exodus. This is an index of stocks of ‘high valuation’, derived from all of the traditional methods, that is my single best barometer of risk. It is down 24% for 2016.
If a picture is worth a thousand words, that chart is worth billions.
Related: The NASDAQ has reversed early gains and is in full ‘getting hammered’ mode.
It’s also worth mentioning, financials are getting smoked daily.
dyer440’s netflix put recommendation trade from a few week’s back is set to be a monster trade.
hat tip to him.
Dollar getting crushed. QE4 on the way?
I got burned by biotech. Thank god I got out last week.