Defensive stocks have been outperforming since late February yet it seems that everybody just realized it. I have read numerous articles in the past few days about how defensive stocks are outperforming in the major newspapers. Once a trend is written about in every major newspaper it is generally late in the game.
I am shifting my exposure to technology names as they have been sold hard in the past couple of days from the SPY. I have written Puts on Google and Microsoft and reduced my exposure to SPY. In addition, if there are sovereign issues technology profits should hold up relatively well as they did through the subprime crisis.