Market Reversal and a  Light Sell-Off

Technicals and a market reversal particularly a $20+ drop in AAPL gives us reason to take profits or hedge after a great start to 2012. The S&P is up  7% YTD,  NAZ up 12% YTD, and the IBB biotech ETF up 16% YTD near its all time high. Some consolidation is due particularly with speculation picking up. Industrials and transportation induces are hardest hit down over 1%. Tech was up abut 0.5% now is down about 0,5%. Greece deal stalling does not help.

Investor sentiment has been at all time highs and Barron’s had Dow 15,000 as a headline this week.The Euro has also rolled over down 0.5% at 1.3066.

2/16  Positive Economic Data and Euro Rally Triggers Triple Digit Gains

The sell-off from yesterday ended this am as positive economic data in housing, lower jobless claims and a rising Philly FED index drove stocks up. The WSJ reported that money flowed into mutual funds with net buying of $13.17B for the fifth consecutive week. Concerns about Greece fell by the wayside as long term concerns abated and the  Euro rallied from a tad below the 1.30 pivot point.

Amazon (AMZN) was down 3% to $178.80 on  a Morgan Stanley downgrade citing an Apple threat. Apple AAPL $495) down 0.45% volatility continued driven more by the options trade (expiration tomorrow) rather than any news like the battle with Samsung. Apple now has a$461B market cap.

Leerink Swann Healthcare Conference This Week Boosts Life Science Stocks

Biotech stocks resumed their bull run with all green in our biopharma focus group except Regeneron (REGN) and Dendreon (DNDN).  Nektar (NKTR) and Targacept (TRGT), both laggards show a nice recovery over one month.  Diagnostics and Tools showed strength as well with Response Genetics (RGDX 2.13) up 8.67%. The IBB ($121.84) is back near its all time high of $122.84 and Forbes reported an $78.4M inflow into this ETF.

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