Profit-Takers Still Skimming

 | Apr 02, 2013 | 3:35 PM EDT
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The giveback seems very orderly, although, again, to me the decline started once again with Apple (AAPL).

Now we are in day two of the selling of non-healthcare/non-consumer products in order to lock in gains. That includes several stocks that I think can be bought slowly but surely into the decline, including Radian Group (RDN), because I am still not hearing anything negative about housing, Micron Technology (MU), because of the DRAM tightening, and U.S. Airways (LCC), because the AMR deal is going through.

I like Radian more than, say, Toll Brothers (TOL). U.S. Air is the best of the transports because of that merger. Micron has that Elpida merger going for it. Those are powerful drivers. (If you don't believe me, take a look at Hertz (HTZ), which held a meeting today that showed how much earnings power these mergers can bring.)

Now there are plenty of people who think that the only stocks that are working here are the pure growth stocks. I have to admit that I am amazed that the profit-takers cannot take these stocks down. I thought for sure that when Goldman Sachs downgraded General Mills (GIS), it would be the beginning of a wave of selling that simply didn't occur and downgrades that simply haven't happened.

In fact, anything staple keeps ratcheting up, including Costco (COST), and anything super-growth keeps going, as three of my favorites, Biogen Idec (BIIB), Regeneron Pharmaceuticals (REGN) and, to a lesser extent, Celgene (CELG) keep running.

So there are the profit-takers, which remain weak, and there are the endless growth stocks, and they simply won't quit. They have now defied what anyone thought they could do, and only the most ebullient of investors can stay with these stocks.

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