Pharma Has Two Winds at Its Back

If you read The New York Times on Sunday and you owned Genentech (DNA - commentary - Cramer's Take), all you could think of is, "How much money am I going to lose Monday?"

Guess what. You are now above Friday's price. The article, which I am sure had a thorough go-round in the short community, caused a blow that turned out to be the blow you buy -- the bounce off the canvas that made you bet with the underdog and win.

Because of the rotation. Because of Barack Obama. Because there's no price that people won't pay for cancer abatement. Because the FDA is on the side -- rare but true -- of the people who want Avastin.

I can't emphasize enough how important sea changes are. You have one here that is not only once blessed -- worldwide slowdown favors drug stocks, as I say every night on "Mad Money" this week -- but twice blessed: The Democrats hate Big Pharma but always favor drug company innovation, and DNA is the innovator, even though it can hardly be considered a small biotech company.

How powerful is this rotation? Two real disappointers, two companies that totally screwed up with bad acquisitions -- Hologic (HOLX - commentary - Cramer's Take) and Inverness Medical Innovations (IMA - commentary - Cramer's Take) -- are at last catching bids. Amgen (AMGN - commentary - Cramer's Take), which has been a total disaster, is making a move back up. That seems for real. Even the suddenly hated Merck (MRK - commentary - Cramer's Take) is rocking, and I think people are way too negative on that one, too.

In this rising tide, even the leakiest boats are lifting, and, funny thing, they will only go higher, because, at last, the struggling analysts who have hidden in this amazing bear market for everything drug finally have something to say, and if history is any judge, they will shout it daily from the rooftops.

Random musings: I am frozen in Deere (DE - commentary - Cramer's Take) because of a caller on last night's "Mad Money" (for Action Alerts PLUS), but the idea that somehow Deere will keep getting crushed with the fertilizers returning to prominence is pretty much ridiculous.

At the time of publication, Cramer was long Deere.

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