As much as it pains me, I have to recommend selling Celgene (NSDQ: CELG). The stock continues to drop, despite reporting better than expected sales and earnings last week. The sentiment in the drug group is not great but this stock is acting much worse than the others. There is clearly a large seller liquidating.

I hate to sell at the bottom but feel I must be disciplined. I placed an $83 stop loss on this position about a month ago and now that is has closed below that level for two consecutive days, the loss is triggered. This is a simple rule I follow.

You might consider selling half your position and waiting a bit but for our hypothetical portfolio, I am selling out the entire position.