Big Cap Pharma - It's About Time

Looks like the big cap pharmas are emerging as the new leadership group. Many of the pharmas broke above their 200 day moving average on very strong volume. We had very good earning reports from Pfizer (Ticker: PFE), Merck (Ticker: MRK) and Schering-Plough (Ticker: SGP). Pfizer, Merck and Schering-Plough rallied over 4% today on strong volume.

I did a quick comparison of the pharma (Ticker: PPH) vs biotech (Ticker: BBH) ETFs. As you can see, a picture speaks a thousand words. Pharmas are the leader and the biotechs are lagging behind. I would start backing up the truck in the big cap pharmas.