Yesterday, it was health insurers. Today it's pharma, with Eli Lilly (LLY) leading the way with a headline number that looked great but, as we are telling Action Alerts PLUS club members, a diabetes profile that's less than optimal.
We are reverting to the tech/aerospace/cyclical/banks rally as we rotate out of the drugs and the oils.
If you step back, you can see the drug stocks have been treading water for ages while the Boeings (BA) of the world sell off and recharge.
I think this is a very serious pattern, because a diversified portfolio has gotten difficult to maintain.
We have been adamant that the carbon stocks are the new tobacco situations, and we have been trying to cut back from the group. We also have tried to be smaller in health care.
I would also note that it doesn't matter how cheap a big-cap pharma is, it's just a very tough own.
Amazon (AMZN) ? A footrace to $1500. Just get long, I guess. You can't stop a juggernaut.