The Nasdaq flexed its muscles today, aided in part by a powerful move in the biotech sector. The tech rich benchmark rose by .8% and the S&P 500 trailing well behind with an advance of .3%. Investors welcomed M&A activity in the energy and healthcare sectors with MYL looking to swallow PRGO at a hefty premium and any transactions taking place has to be construed as bullish since the acquirer must see value in the target. Mergers in that space have been plentiful being a leading group with UNH taking out CTRX, PFE with HOS, ABBV buying PCYC just to name a few. The energy takeouts have been rumored more or less and can today be the start of some more action in the group? RDSA announced it was buying UK based BG Group and lets recall other potential rumors that never crossed the finish or dotted line. WLL put itself up for sale, but no buyers have yet to come forward. EOG was spoken about this year as a takeover target. If I had to put my 2 cents in I like the look of an EMES. The stock is down 2/3rds from all time highs made last summer. It put in a double bottom right at the round 40 handle during some very big weekly gains, the weeks ending 12/19/14 and 3/20/15 jumping 28.7 and 12.1%. I feel it is time to start taking a serious look at individual names in the group as once stocks begin to get taken out it usually energizes acquirers to do more. Stick to names that have survived previous downturns, like your EOG’s and PXD’s.

This article requires a Chartsmarter membership. Please click here to join.