Either this is the countertrend rally of rare expectations or something is actually brewing in biotech, restaurants and retail.
Here are three segments that have been left for dead. We know biotechs have been hideous, a combination of political woes, a lack of takeovers and new drug approvals and a sense of political doom with either candidate. Nothing has let up on any front there, so that rally just seems like an oversold one.
The weakness in the restaurants is a function of minimum wages and a belief that the consumer's ardor with going out has cooled. I agree with the former -- it has gotten too expensive to staff -- but I also think the latter is untrue.
Retail? I have very mixed emotions, but every dog has its day.
Right now it is too early to tell if there is a turn, but you know when you see Celgene (CELG) and Regeneron (REGN) going up, Domino's (DPZ) continuing to fly higher and Home Depot (HD) up a couple that it can't be dismissed as a one-off move.
