Back on November 20, 2009, I noted the following:
Click to enlargePLAYING THE DOUBLE DIP
1. Get Defensive: Drug Makers & Consumer Goods
Here, I like small cap drug makers best. Examples, I like and own both Spectrum Pharma (NASDAQ:SPPI) and Ariad Pharma (NASDAQ:ARIA).
Other potentially positive, near-term plays include: ENDP, ONXX, CELG, CEPH, IMGN, and OSIP (as of 11/20/09).
2. When "IT" hits the fan - deflation pressure or a market correction (currently ongoing): The US Dollar is viewed as a safe haven.
Here, investors should set aside inflation fears and buy some Dollars via PowerShares DB US Dollar Index Bullish (UUP). During such a downturn, correction or double dip, Oil should be sold and/or avoided. Observe Gold (NYSEARCA:GLD) and most all other commodities from the sidelines.
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Disclosure Long ARIA and SPPI.