IBB started
participating in the bullish stock market during the summer of 2009. That
coincided with town hall meetings, where politicians were confronted by
their constituents. That stimulated bullish behavior.
In early
October 2009 the U.S. Senate started releasing information suggesting a
healthcare reform bill that may have a good chance of becoming law. The
Senate's voice became noisier during the month of October. On October 22,
2009, the Senate's noise level heightened. Although most of the stock
market was bullish in early October 2009, most securities related to
healthcare were bearish. As you can see, this ETF's bullish blue curve
collapsed upon the announcement the U.S. Senate is nearing passage of a
healthcare reform bill.
The most
inefficient organization in the United States is the U.S. Government. Its
tentacles of inefficiency will be pervasive in the healthcare industry.
Rest assured the bear will be delighted upon passage of the healthcare
reform. Its passage will eventually cause the bull to expire, while the
bear will again become dominant.
