Nothing goes up in a straight line, not even during the holidays, so a near-term market pullback would be a healthy way to prevent a steeper correction in January.

We could be on the verge of another major oil M&A boom like the historic one that brought Exxon and Mobil together. Mergers and acquisitions have the potential to shake up a market and send some stocks soaring, but the best industry plays aren’t all that obvious.

With the Allergan acquisition, Actavis will be able to strengthen its global presence especially in Canada, Europe and Southeast Asia and other high-value growth markets like China, India, the Middle East and Latin America.

It has been an eventful year in the big pharma and biotech space, and a lot is happening in this space that biotech investors should take note of.

The average large cap score is 68.31, above the four week moving average score of 67.91. The average large cap stock is trading -10.27% below its 52 week high, 2.75% above its 200 dma, has 3.57 days to cover held short, and is expected to see EPS growth of 10.77% next year.

In the news today due to a merger with Actavis that values Allergan at $66 billion, Allergan is a Zacks Rank #2 (Buy).