Flashy Cars and Substance

Looking beyond the Ferrari IPO (trading under, "RACE") this morning, I noted to Members early on that when we see the price action in IPOs trading on their first day immediately head south, as RACE has done along with biotechnology stocks this morning, it can often mean souring risk appetite for the market at-large after a multi-year uptrend. 

BIIB is still green, but the rest of biotech came in sharply, something much more aggressive than a mere initial gap-fill and grind lower off the open. CMG is also breaking down, as the market is taking some more hits to leadership on the back of TSLA's selling yesterday. 

The main point, though, is that at this stage in the market it is worth paying particular attention to a new, visible IPO like Ferrari to pick off a "tell" about broad general risk appetite.