The Trade that's Better than Biotech

You've watched the collapse firsthand. Traders have picked the high-flyers off one by one. But here's what Wall Street's not telling you... April 01, 2014     The Trade that's Better than Biotech   Trading around the biotech bubble While biotech crashes, check out these healthcare winners Plus: What's up with Palladium?   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner Biotech has bubbled over. You've watched the collapse firsthand. Traders have picked the high-flyers off one by one. But here's what Wall Street's not telling you... Healthcare can still make you money even If biotech stocks can't. "When biotech sneezes, healthcare might catch a cold," Rude researcher Noah Sugarman explains. "But healthcare stocks can easily recover from this ailment in a way that the sickly biotechs probably won't. That's all because there's some serious long-term value to be had in healthcare. Don't throw out the good with the bad." Biotech's dramatic rise started getting bubbly late last year. But guess what? The healthcare sector-- established drug companies, hospitals and health insurers-- is actually beating the market without the ridiculous volatility you're seeing in biotech names. Over the past couple of years, the S&P' Health Care Index has jumped 55%, versus the S&P 500's 32% rise. That space has also gained more than 5% in 2014, while the rest of the market has flat-lined. You've got to make the distinction between biotech and healthcare here. Just look at the difference in performance over the past month. Biotech shares shaved their 20% year-to-date gains down to the single digits in a matter of weeks. Meanwhile, established health care stocks consolidated in an orderly fashion. "The health care sector has a lot going for it down the road, too," Noah reminds us. "The Affordable Care Act, along with an aging population, both remain big catalysts long term." The Health Care Select Sector SPDR ETF (NYSE:XLV) is in a great spot right now. It's bouncing nicely off its 50-day moving average. A trade here on the long side is a safe bet. In today's PRO, I also have a new healthcare trade for you. It's a big, established drug company that's on the verge of a huge breakout. Get the ticker by clicking here...         Don't Buy That Cabin in the Woods Just Yet There are still three years left in the Obama presidency. Plenty of time for him to push the country further down the road to socialism. But that doesn't mean you have to check out just yet. You can still opt out of the government's plan for you. Click here to find out how to get started.           Rude Numbers Targets, Predictions and Wild Guesses   6% of AT&T shares are being bought back by the telecom. However, share buybacks have slowed across the market.... 35 S&P 500 stocks have a market cap of greater than $100 billion. According to BusinessInsider, these stocks combine for $6.9 trillion in market cap and represent 40% of the S&P. $3.02 is the price of copper this morning. The good doctor is enjoying a breather here after retaking $3 following its quick decline in March... $1,426 is where you'll find platinum futures this morning. This precious metal appears to be putting in a higher low near $1,400 to start the new trading month off on the right foot... 1,869 marks the spot for S&P futures early this morning. Stocks are once again going for a green open as the second quarter begins...     Rude Trends When to Buy... When to Sell   The first quarter is in the bag. While stocks managed to stay out of the red (barely) to end the first three trading months of the year, I continue to see more exciting setups in the commodities market... That makes today the perfect opportunity to talk about some of the bigger trends shaping up so far this year in the commodities space... "The palladium trade is down so far," writes an anxious reader. "What is the timing where we should see a move?" Well, let's see... Palladium has been volatile since its breakout in early March. Take a look: I've circled the post-breakout congestion in red. Despite the wild moves palladium has held above the breakout zone. That's a bullish sign--and an opportunity to jump on this trade if you missed it a few weeks ago. Ultimately, I think palladium will make a bigger move higher from here. Patience is key... [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   When Your Accountant Wants Tax-Free Income... This is What He Does Bigger than Benghazi, the IRS and the NSA Scandals… Combined? Is Obama Terrified of the "Secret $200 Retirement Blueprint?"     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary: Join the conversation! 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