The Drg Index - Last Bastion Of Value

E

eagle488

http://stockcharts.com/h-sc/ui?s=$DRG&p=W&b=9&g=0&id=p50162743671

I reviewed all the indexes just now. DRG is the last bastion of any value at all. Every other index appears to have topped out. If you enjoy the swing trade, it appears the drugs are where its at.

ABT ABBOTT LABORATORIES
AMGN AMGEN
AZN ASTRAZENECA PLC ADS
BMY BRISTOL MYERS SQIBB
FRX FOREST LABS CL A
GSK GLAXOSMITHKLINE PLC
JNJ JOHNSON AND JOHNS DC
KG KING PHARMACEUTICALS
LLY LILLY ELI CO
MRK MERCK CO INC
PFE PFIZER INC
SGP SCHERING PLOUGH CP
SNY SANOFI-AVENTIS SA
TEVA TEVA PHARM INDS AD
WYE WYETH
 
Thats right we are screwed.

Actually, there are almost no values in the market right now. I went through the major indexes and all are trading well above the 50 week moving average and there has not been a correction to speak of in 4 months.

There are a few strategies that can be played off of this:

1) Short or puts (assuming that the market will correct)
2) Buy high and sell higher (assuming the market will go higher)
3) Look for value stocks that have not been a part of this bullish mania which are far and few between at this moment.

During the summer, there were many good obvious values, but now its dangerous getting in . . . I suggest going partly or mostly into cash as we enter the new year.
 
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