Drugs Up as Boring, Slow Money Pours In

Drug stocks like Merck rose today after end-of-quarter selling left them with nowhere to go but up.
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How in heck can

Merck

(MRK) - Get Report

be up four? On a day when the bonds are terrible?

How about

Lilly

(LLY) - Get Report

? Believe me, it is not just the fundamentals.

Here's how I think it occurs. At the end of a quarter people sell all of their dawgs. The drugs have been total pounders.

Amazingly, this is how these stocks look WITHOUT SELLERS. That's what happened. The sellers finished. Normal

S&P

buying at the beginning of a quarter is now coming in. These stocks are heavy in the S&P. When that boring, slow money comes in, it moves up anything where there are no natural sellers. (This is what has happened for the last five years, so I hope it doesn't seem too revelatory).

So the drug stocks all moved today.

Remember this pattern. It happens quite frequently. I

detailed it the other day about why I bought

Bristol Myers

(BMY) - Get Report

. It leads to some good trading.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Bristol-Myers Squibb. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.