From Trader's Narrative:

Health care stocks have been in the news recently because of the political efforts to reform the health care system in the US. Late last year, just before the Christmas holidays, the senate passed the “Affordable Health Care for America Act” by a margin of 60-39. Right now it is continuing to wind its way through the halls of power in Washington with most expecting it will be signed by Obama shortly.

There was a lot of chatter online and in the mainstream media about the price action in health care stocks. Many pundits pointed out that the bill must be bad for consumers and good for the HMO’s because their stocks were hitting new highs. While no one is really happy about the resulting bill, let’s leave aside for now the political arguments and concentrate on the trading opportunities that this presents...

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