Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Stealth Sell-Off In Biotech Stocks

|Includes:Biogen Inc. (BIIB), IBB, XBI

Update After Friday Close:

IBB up 4.5% for Week, XBI up 3.9% But stocks sell off Friday AM after hitting new highs.

Major losers among mid caps on 2/14 were: PBYI, PCYC, VRTX down about 4%; ALNY, CBST, INCY, MDVN, NBIX, SGEN and XBI down about 2-3%. Watch potential double top in XBI near term.This is a good time to look at your life science portfolio and take profits to 15% cash.

Biogen Names Papadopoulos Chairman


Profit Taking On High Fliers- INCY, MDVN, PBYI, XBI

Agilent(NYSE:A) Growth Slows

NASDAQ Flat at 4234 12:15p EST

After hitting new highs this week biotech stocks are in a wave of selling so watch technicals and volume. The small cap, speculative weighted XBI ETF is down 1.81 % after an early reversal off AM Valentine's Day highs. The "equal weight" holdings gets re-balanced quickly but many of the XBI stocks are down this week and today: ALNY, GALE, ICPT, NVAX, PBYI, SGMO etc. -see detailed holdings. The IBB is much less volatile than the XBI due to more concentrated holdings of large caps.

There is a lot of red within the Rayno Biopharmaceutical Portfolio such as : ALKS down 2%, CBST down 1.9%, GILD down 2.2%, PCYC down 2.9% and SGEN down 3%. BIIB is stable up 0.34%.

Most mid and small cap biopharma stocks in our index are red except ACHN, ARIA , GERN and THRX.

In the tools/diagnostics sector and possibly a bellwether Agilent (A $56) is down 6.7% on slower revenue growth and guidance.

Earlier this week we urged a life science sector weighting to 15% cash due to huge moves in January.Update after close today.

Disclosure: I am long ACHN.

Additional disclosure: Long Fidelity Select Biotech Fund (MUTF:FBIOX) and short individual biopharma stocks on a daily basis.

Stocks: BIIB, IBB, XBI