Tech Crash / Pharma Rally

The techs are just getting slammed. Yesterday, Apple disappointed with the iPod sales and after the market close today, IBM missed their numbers. Nothing appears to be working in tech, look at the former leaders like eBay (the chart looks ugly). I think the selling is just getting started in the techs and I would stay out of the way.

The new leaders are the pharmas / biotechs. When the FDA pulled Pfizer's Bextra (Cox 2 drug) off the market, that was basically the bottom for Pfizer. Everyone who wanted to get out of Pfizer pretty much gave up on that day. After the close today, the court upheld Lilly's Zyprexa patent. All the pharmas are up big in after markets. Many pharmas and biotechs will be reporting next week. This should give additional momentum to the group.