This Market Is Driving Everyone Crazy

NEW YORK ( TheStreet) -- This market has been anything but easy to navigate since the start of this year.

The first quarter is nearly over and the S&P 500   has gained just 1% this year after surging 30% in 2013. Last week, was full of noise from Crimea, the FOMC (Federal Open Market Committee) rate decision, bank stress test results, and quarterly options expiration. Adding the cacophony, Federal Chairman Janet Yellen hinted at a possible rate hike in six months, prompting a sell-off in Treasury bill, a course that only began to reverse by the end of the week.

Friday's market performance, or rather lack thereof, has left traders scratching their heads. The market opened, made new highs and then gave everything back and then some. The bleeding began with the biotech sector, iShares NASDAQ Biotechnology Index, (IBB), which took the NASDAQ down with it. The biotech's had already been showing signs of deterioration, but Senator Henry Waxman (who will be retiring at the end of this congressional session) apparently wants to garner a reputation for popping the biotech bubble on his way out. In case you missed it, he has sent a letter to Gilead Sciences (GILD) asking them to justify the suggested $84,000 price of their Hepatitis C vaccine, Sovaldi. Although I consider it just noise, it finally gave the market reason to begin selling off the froth in the biotech stocks.

There is no denying that things look to be deteriorating within our market. Look no further then the momentum stocks that are often looked upon by traders to determine risk appetite. Stocks such as Google (GOOG), Priceline (PCLN) and Netflix  (NFLX) have been starting to give back recent gains. This should come as no surprise to anyone who has watched how far they have come in just a years time. At the start of this year, I wrote a piece about the potential for mean reversion to rear its ugly head among some momentum stocks that is particularly relevant now and you can read here.

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