NEW YORK (TheStreet) -- The biotech sector is due for a bounce, say investors on StockTwits.com. Instead of setting up for continued contraction Monday, many cashtaggers on the leading investing social network maintained that last week's sell-off created buying opportunities. And they refuted arguments that biotech valuations had inflated to bubble proportions and were now, rightly, losing hot air.
The Nasdaq Biotechnology ETF (IBB) is down 7% since April 1. But sentiment on the ETF is still 50% bullish, according to StockTwits' analytics, despite the dismal performance. ProShares UltraShort Nasdaq Biotech ETF (BIS), for comparison, has 56% bearish sentiment.
The negative opinion on the short biotech ETF is attention-grabbing, given recent gains. The BIS ETF, which aims to return double the loss of the Nasdaq's biotech holdings, is up 14%-plus since April 1. Typically, asset gains increase bullish sentiment.
Some investors believe upcoming medical conferences will change the tide for the sector. They argue that news announced at the American Association for Cancer Research's annual meeting (held April 5 to 9) and at the International Liver Congress (held April 9 to 13 in London) will attract investors back to beaten-down names.