Healthcare has been underperforming the past few days after a couple of months of outperformance. I chose to trim my positions somewhat after the Dubai crisis. The reason was that many of my healthcare stocks went down more than the market the day of the Dubai plunge. One would have expected healthcare to outperform during a financial scare. That sent off some alarm bells that maybe healthcare needs a correction.
There is a similar situation currently in the market. On Friday we received news that the economy is improving and today Ben Bernanke all but said he was going to remain easy. The bulls have the best of both worlds. An improving economy and a money printing Fed. They really should be able to rally this market. They still have time but if they cannot get this market going by the end of the day that should set off some alarm bells.