Our suggestion to take profits on some of our bigger winners late last week was well-timed. From the blow-off top (temporarily, at least) on Friday the iShares Nasdaq Biotechnology ETF (IBB) is down 10%, and the small-cap-centric XBI about 13%.
At the same time, biotech “bubble” talk is back in vogue, even in the mainstream. Gawker.com. known for their humorous blogging not rigorous news reporting, covered “the biotech bubble” on Wednesday. We’ll discuss this further, below.
On Wednesday the selling has slowed and the IBB, as well as the S&P 500, were bouncing into the afternoon, though the IBB still closed red for the day. Biotech investors might point to a few causes of the 4-day selling streak. 
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