While I came into the day net long I am having a bad day. My longs are centered in the health care space and Johnson & Johnson is taking the group down hard. They are saying that European austerity plans will hurt European pharma pricing by mid single digits and total pharma sales by a couple percent.
I sold the group when these European pricing pressures started surfacing and the group has fallen by 10% since. I thought the pricing pressure was priced in but it seems there is no price too low and no multiple too low. I was actually expecting more pressure from Europe but I am clearly in the minority.