After Obama: Defensive Trades Are Back

Tuesday's rally has become Wednesday's hangover. It's really that simple.

Less than a day after our historic election, investors have inverted their thinking and re-mired themselves in economic realities that never really went away.

As pundits and professionals spent much of the past week trying to play the polls and come up with "Obama stocks" , the market today is again demanding sobriety and asking, "so now what?" And the answer... It's the economy, stupid!

One look at the day's leaders and laggards and you'll see that the defensive trade is back in style. HMOs, health care equipment & service, and staples like food, beverages & tobacco are all in hot demand.

At the same time, the growth trades of tech, telecom, financials, REITs , and retailers are all cooling off faster than an Alaskan evening.