Is Obama’s Health Plan Killing The Stock Market?

Things were sailing along fairly well since mid-March when the stock market started its climb from 6,500. Sure there were the ups and downs, hedge funds sold short and took away some profit, and mutual funds had to get in to capture some of the strong gains.

But the staling of the last week- what is causing that. Some stock chart analysts say Obama’s health care plan has a lot of folks worried, the secrecy the politics, and the thought of death panels and a first step toward government control of health care (socialism) of the health care system in the US. Representatives from Canada and the British do not speak highly of the limited care they get and yes it depends on your age and your contribution to society. One well known British official has urged the US to keep healthcare private other than Medicare which actually works fairly well.

This British representative says no one speaks of the old and sick dying in back wards of hospitals with no care and no treatment as the government says its time for them to go.

Jim Cramerand the chart analysts that support him on thestreet.com say stay away from HMO stocks, stay away from United Healthcare, Aetna, Wellpoint and other healthcare providers like Medtronic’s as the uncertainty about health care and the secrecy has caused these stocks to drop precipitously. This past weeks drop went below the 50 day moving averages. A bad sign say the chart masters.

On the other hand Abbott Labs (ABT) benefited from its recent acquisition this Monday.

So what are your thoughts- what’s spooking this end of September market? Is a little   pulling back a healthy thing?   Will it retreat further or provide a breather for the bulls to rush in again.

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