You’ll Never Guess Why This Bizarre “Safety Trade” is Working Right Now

by Greg Guenthner
Daily Reckoning

Biotech is the new safety trade!


I know that sounds ridiculous. But it’s true. Utilities are supposed to be the stodgy yet steady winners when the market gets a loopy. But that hasn’t been the case this week.

Biotech’s on the fast track right now. And today we’re jumping on the biotech train for some quick double-digit gains. You’ll see how in a second…

While the major averages were taking long walks off short piers Thursday, investors gobbled up biotech stocks. The Biotech iShares finished the day with a gain of nearly 3%. Meanwhile, the “safe” Utilities Select Sector SPDR crashed more than 2%, knifing through support.

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