Doing Drugs

One pill makes you larger
And one pill makes you small
And the ones that mother gives you
Don't do anything at all
--Jefferson Airplane

A sector that embodies the melt-up, gappy feel to the tape is pharma. Many names (e.g., ABT, AMGN, JNJ, LLY, MRK) are marking all time highs with charts taking on parabolic shape.

Stochastics twisting high in over-bought territory reflect technical risk of buying the traditionally staid, boring drug sector up here. That makes no never mind currently to traders and black boxes that are prescribe to the notion that objects in motions tend to stay in motion.

Until, of course, that motion reverses.

position in JNJ, MRK