Biotech Bubble Chart - IBB - Monthly

1345 25 30
Janet Yellen has warned about the bubble in Biotechnology, and rightly so since prices are up 10-fold from the lows in 2002.

Stories of biotech companies getting acquired and then having their drug prices multiplied overnight by unscrupulous owners is going to backlash into new Gov't regulations, at least a rational mind would think.

The game of developing drugs and ripping off customers of their lifesavings is akin to highway robbery. Time for the sheriff to come around and help. Well, the sheriff has spoken: Janet Yellen has warned about the bubble valuations of Biotech stocks and they have rallied 75% since her warning. I recall Greenspan warning about Real Estate in 2002-2003-2004 and then finally by 2007 it was falling apart as new regulations shut off lending. How do you shut down the biotechnology bubble?

I don't know, yet.

IBB             342.59 last 342.52 last 1:22PM EST Sep 21, 2015
Comment: I think the rally is about at the end here - worth re-shorting again here after this massive bounce.
Comment: Massive "Yellen correction" carefully orchestrated. Yellen speaks again this week, perhaps she will mention this again.
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Very interesting - thank you for sharing!
Things are not quite so dramatic if log scaling is used. In this case, rather than an increasingly rapid rise the increase is actually linear since 2011. I think that is a more appropriate way to view things.

Reaching re-short level. Just taken 30% of my expected position in short via ZBIO.
Shorter term update....
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This is collapsing right on target... over 13% in less than a week!!!! The reasons I mentioned are what is going around in media circles and is justification for "lightening up" by insiders and those close to the inside of the "game of biotech" investing. Price is only a function of "at the margin" activity of buyers and sellers and at the MARGIN, there are sellers.
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Almost hitting my take profit level via ZBIO (3x nasdaq biotech short).... never had a stop at all, since this trade is so obvious
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IvanLabrie LastBattle
3x, nice.
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timwest LastBattle
Well done!
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Short again on rallies :D I'm out of biotech now...
ANOTHER way to look at this bubble....
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