Celgene Crashes On Sales Miss; Biotech Is In Trouble

Celgene has opened down -17% in the cash session following a third-quarter miss by a wide margin. Fellow biotech <ALXN> and <BMY> offered mixed results as well.

According to CNBC,

The shares of the biotech company opened down 18 percent Thursday after it reduced 2020 sales guidance to range of $19 billion to $20 billion from its previous forecast of more than $21 billion. Celgene also lowered its 2020 earnings-per-share guidance to more than $12.50 from more than $13.00. The percentage drop in the shares is the largest in 17 years.

Celgene <CELG> bubble is popping

Taking a look at biotech <XBI> -164bps to start, the monthly timeframe shows a double top with sellers grabbing hold of the auction. This could force a downside imbalance with reversion to 61 point of control.

Biotech <XBI> verse SPY.. Can biotech forecast stock market tops?