How about that? You got two down days and the stocks that stabilized midday yesterday -- the stocks where the bulls won the skirmishes -- acted terrific today, and that's just what is supposed to happen.
Can't get too distracted, though. The best-acting group today is the one that started advancing yesterday, and that's biotech.
Why not? There were three bidders for Pharmacyclics (PCYC) today and I think they all have to be eying Receptos (RCPT), Isis Pharma (ISIS), BioMarin (BMRN) and even Regeneron (REGN), despite its Sanofi (SNY) strangle.
Despite the pasting of AbbVie's (ABBV) stock, Mallinckrodt (MNK) shows you, once again, how to make acquisitions: small, bolt-on, immediately additive and adding another leg to the profit machine.
What's next? Perhaps a return to the high-multiple growth stocks after a severe hammering. Notice the strength in Red Hat (RHT) and Salesforce.com (CRM)? That's saying something.
Random Musings: Consider buying R.R. Donnelley (RRD) for growth and yield, it may have the single best combination in this market.
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