Battered, but bullish

Biotech stocks have fallen faster than the general markets since their July 20 peaks, but at least one buysider and a technical analyst don't think the sector is in danger of losing the premium it built up during a three-year run. The reason is that when investors buy on weakness, their first stop is still biotech.

Piper Jaffray technical analyst Craig Johnson pointed to Aug. 21 as a signal biotech won't be abdicating its market leadership. That day saw the markets post their biggest point drop in more than four years...