Stock Trends
Healthcare focus + stocks that just missed the Hot List
Good morning,
Tuesday morning’s Overtime report highlighted the importance of the healthcare sector holding its March lows, and it responded with a 2% gain that day.
The trends aren’t great here (the 50-day just crossed below the 200-DMA) but a bullish momentum divergence aids its prospects for holding support.
Today, we’ll start off with a bottom-up review of the sector and what some of its bellwether stocks are saying.
We’ll also end with long ideas that just missed the cut for the latest round of Hot List additions and some Hot List updates.
Healthcare focus
CVS completes a massive bottom
Too tactically extended to chase but the measured target says the 2015 all-time highs near $114 are in play.
The beaten-up health insurers continue to work higher
Humana is up an astonishing 83% since the market’s March 30 lows. Approaching a big resistance point and with an RSI-14 of 88, expect a consolidation. Similar look for UnitedHealth 👇
Top stock LLY is back on the right side of a key line
Not the best chart, but yesterday was the first one-month high since the stock’s all-time high on January 8.
Watch this bullish divergence on Intuitive Surgical
No group has been worse than the medical devices. A bullish change here would be important, but I’m not a buyer.
Boston Scientific approaching long-term support
