Last rites for biotech January 29, 2016 Archives | Unsubscribe Don't Bet Against the Biotech Bears Last rites for biotech Riding the elevator lower Plus: Boring stocks strike back  Greg Guenthner coming to you from Baltimore, MD... Biotech took another tumble yesterday. The sector is now down 33% from its 2015 highs. And it ain't over yet… Today I'm going to talk you out any hare-brained scheme you might have picked up on TV to go bargain hunting in biotech. So let's get this biotech mess out of the way. I gave the sector its last rites back in September... "The biotech bull looks like it's finally breathed its last," I said. "It's ready to shove off for bliss eternal after one mother of a run." Technically, the Biotech iShares started breaking down earlier that summer. But after the death cross grand slam that torpedoed the major averages in August, it became apparent that most biotechs weren't getting off the mat… Now it's time for the funeral. Biotech looks like it's finally going to that great bull market in the sky. Some industry experts are guessing that fund managers badly want out of these risky names while they still can. Makes sense. The major averages have faded in 2016 but biotech's fared much worse. The Biotech iShares are down more than 20% this month alone. The pain is real… All those sweet, tasty gains from the raging biotech bull… Poof. Gone in one fell swoop. You know what they say—stocks take the stairs up… and the elevator down. I'm not saying all these biotech stocks are headed to zero. I'm sure there are plenty of interesting companies in the biotech sector that are going to do a lot of good for the world one day. And I understand that some of these companies are even making good money these days. More power to 'em. But these facts don't matter right now. Bullish narratives and fundamental reasons to buy take a back to seat to selling when the pressure is on… Here's all you need to know about biotech in one sentence: Sellers are in control. Now's not the time to add speculative biotech positions in hopes that this is the bottom. True, we could easily see an oversold bounce sometime over the next couple of days or weeks. But we're now beyond the blow-off phase of an epic rally. You need to see some serious mean reversion before you can even think about sticking your toe back in the water. Want more proof? Just feast your eyes on this long-term biotech chart: The raging bull that lifted the Biotech iShares to gains north of 300% over the past four years has run its course. That perfect uptrend is kaput. And there's a whole lotta potential downside there that could wreck a portfolio… So if biotech is the new stock market leper, what the heck is the risk-averse investor buying these days? Only the most boring stocks on the market: utilities and consumer staples. That's your shelter from the biotech fallout.  Sincerely, Greg Guenthner [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner] An Insane Twist to The Ted Cruz "Canadian Issue" (READ NOW)… You've likely heard that Republican candidate Ted Cruz was born in Canada. But there's an unbelievable story unfolding… While most folks are laser-focused on Ted Cruz… we think there's potentially an even BIGGER "Canadian issue" shaping up with none other than Donald Trump… This could be a game changer for Trump's campaign. Click here for the shocking TRUTH. Rude Numbers When to Buy... When to Sell 125 points were added to the Dow Jones Industrial Average yesterday. That's good enough for a gain of about 0.8%... $33.64 buys a barrel of crude today. Oil continues its sneaky comeback as we approach the end of the week... $2.26 is the price of natural gas today. Natty is following oil's lead higher. It's up more than 3.6% in early trade... $1,115 is where you'll find gold futures. The yellow metal is holding steady above $1,100... 1,893 marks the spot for S&P futures before the morning bell. Stocks are set to open in the green this morning... Ignore At Your Own Peril Today's Must Read Links The Dirty "Foreign Policy" Skeleton in Trump's Closet (Brace Yourself...) MARKET CRASH ALERT: The Collapse Has Started... What Should You Do? How to Get Anything You Want for Free -- Or Pennies on the Dollar Add rude@agorafinancial.com to your address book: Whitelist us Additional Articles & Commentary: Daily Reckoning Website Join the conversation! Follow us on social media: The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. 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