A Hot Sector Cuts Both Ways

Biotechnology stocks, as a whole, are still acting like leaders, with IBB (the sector ETF) clearing $385 this morning, a short-term resistance level. AMGN CELG REGN, for example, have all been acting well as large cap, liquid leaders in the space.

And BLUE, below on the daily chart, is a long idea we are eyeing inside Market Chess Subscription Services this morning, especially if it clears $168.20, above. 

Still, sizable gaps lower in the likes of ONCE this morning drive home the elevated risk which the sector presents, as well last ATNM plunging on Monday. Much like with DIS ETSY GLUU this morning, it is worth reminding oneself that even in a hot sector in an, overall, hot market, risk abounds on Wall Street, offsetting some of the large gains in PCLN earnings, for example. 

Also note that earnings for BLUE are August 11th, next week, which to me means it is either a quick trade beforehand (where I would then sell, win or lose) or wait until after