RO Long : +% 2.53 - % 4.91Parameters :
Position Size : %1
Risk/Reward Ratio : 3
Stop-Loss : 275
Goal : 284.2
*** NOTE : If opens too high , Goal is 290.8.
Pharmaceuticals
Healthcare probably going to take a hit this weekCongress's coronavirus stimulus deal reached Friday night included a provision requiring health insurers to bear the full cost of coronavirus test kits and to waive copays. The federal government will pay the cost for the uninsured. This will probably hurt health insurers Monday, though it might be good for service providers.
Here's another piece of bad news: xenophobia related to the virus has angered the Chinese government, and China’s official newspaper Xinhua published a threat to cut off supply chains for the US pharmaceutical industry. If China followed through on this threat, there could be big US drug shortages, which would be bad for pharmaceutical and healthcare companies.
The whole economy will be down this week due to expanding quarantines, new travel bans, and the failure of Trump's payroll tax cut proposal, but the healthcare sector may take extra damage Monday as it bears the brunt of the cost of coronavirus testing.
Pharma bull divergence -COVIDNormally when we see a such massive drops in equity, the on balance volume also trends down.
OBV is reaching a 2-year high, as we have dropped over 30%.
This divergence suggests pharmaceuticals could outperform as the market starts consolidating.
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Regarding the volatility due to Medicare for All proposal, supported by Bernie Sanders, it seems highly unlikely he will be the democratic candidate.
Pharma ETF - bull divergence!As the PPH dropped 15% below the 200sma, OBV barely moved lower compared to the drop. (Between purple vertical lines). This is considered a Bullish Divergence .
Now with a strong pullback, we are half way to reach past highs; but this time with an OBV we have not yet seen since Feb, 2018.
Ready to buy the dip!
BEAT- BEAST is about to be unleashed...Positional/swing tradeBEAT is your prototypical aggressive growth stock- Strong future growth potential with good earning and revenue track record ... If you can overlook its debt level.
This beast was tamed for a while after its share price skyrocketed from $25 to almost $80 , but it is ready to unleash its fury again.
But first, I think the pullback is in the store facing key resistance lvl in confluence with ichi and BB on the weekly timeframe.
In addition, short % of float is around 10%.
However, it is a bullish sign when price hovers below the key resistance lvl rather than experiencing outright price rejection.
My buy zone is between $45 to $55 for the positional trade. The long term trendline and S/R flip below this price range will act as a strong support.
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Biogen: Sell opportunity.BIIB closed the week around +25% as news regarding a crucial patent ruling came out in the company's favor. With the company's earnings also higher than the forecast, investors seem upbeat with the stock's dynamics. Even though the 1D chart turned overbought (RSI = 75.219, MACD = 6.690), on the weekly chart there is still a clear Resistance Zone at 370.00 - 389.00 which has been holding since 2016.
The fact that the 1W candle pulled back making a big wick right after it entered the Resistance Zone, indicates that traders looked to book profits first. We see this as a strong sell opportunity towards at least the 267.00 Gap or even the 246.70 Symmetrical Support.
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LABD Long IdeaI bought LABD last week based on this chart. The price closed above the supporting moving averages. The general markets are extended past 34 days in this cycle. Usually a market top happens about now.
ABBV should soon find support for a bounceAbbvie has been falling hard on news that it will sell off some drug patents in order to win approval for its merger with Allergan. It is entering a support zone between about $77 and $81, however, and it may start to climb from here as investors start to get excited about the merger. Also look for Coronavirus news to move the stock; word on the street is that one of Abbvie's drugs is being used off-label to treat Coronavirus patients.
With a 5.67% dividend yield and a forward P/E under 10, ABBV looks attractively valued. True, the patent sales will probably negatively affect that forward P/E, and the merger might ultimately result in a lower dividend yield. But Abbvie will also pocket a bunch of cash from those drug sales that can be used to grow its pipeline, and Allergan's forward P/E is also low, with plenty of potential upside.
NanoViricides Inc - CoronaVirus vaccine NNVC news
Flu vaccine makers' stocks jump following the outbreak of coronavirus from China.
World Health Organization accelerates diagnostics, vaccines, therapeutics for coronavirus.
There are 2 main stocks trading on heavy volume caused directly by this new possible pandemic:
CODX
NNVC
Buckle up! Falling Wedge pattern on Daily Ready to Rocket!Perfect close yesterday to bounce off support into a major move up! This is what we have been waiting for!
Notes:
-Stochastic: is sitting in a good spot: Neutral ( Not oversold or Over bought)
-On Balance Volume: Still trending up on the daily very strong sign, especially with the price decline in the short term, The OBV hints at strong momentum still.
-Falling Wedge: Setup is perfect. Its very clean and we are in a good spot!
-20 MA: to 20 moving average is a great support and sets up for a larger stronger bounce after a deep pullback like this.
-SSR in place today so Bulls can really have an advantage here!
-Pre Market: Off to a hot start!
Good Luck and Buy Buy Buy!!!!
NovaMax - a short term play?A comany that is capable of designing a vaccine for coronavirus.
It is difficult to say whether the price spike is due to the capability or their recent drug clinical trials succeeding.
Must Stay above the trend line Must stay above .35 or we go back down into the low .30's / high .20's.
Stop loss set at .35
Not taking any chances with Sabby here.
ENTRY! Akorn Inc. If you like the analysis, Please Like and Follow me for more.
View my previous post of Akorn inc. I evolved the bull flag slightly and found the bottom line the flag respects. An entry at current price would be ideal.
Nasdaq Healthcare: Closing on January 17thFriday's session presented a retracement on the 20 EMA Line, as predicted. I still believe in the continuation of the bullish trend. However, the bearish divergence needs to be monitored, since further price correction could occur.
Disclosure: My ideas contain statements and projections based on assumptions on capital markets, and therefore inherently subject to numerous risks and uncertainties.
Before buying or selling any stock you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.
I am not a financial advisor
Nasdaq Healthcare: Closing on January 16thToday's session generated a bearish divergence on CCI. I am still bullish, but always ready for a trend retracement on the 20 EMA Line.
Disclosure: My ideas contain statements and projections based on assumptions on capital markets, and therefore inherently subject to numerous risks and uncertainties.
Before buying or selling any stock you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.
I am not a financial advisor
Nasdaq Healthcare: Closing on January 15thIf you like this idea, don't forget to support it clicking the Like Button!
Positive session for Nasdaq Healthcare that gained 0.39%. However, I still see the possibility of a retracement over the basis of the Bollinger Bands indicator (orange crosses). I was waiting with anxiety today's session to check for a signal of retracement, and it comes with the third candles (17:00 - 19:00)
The situation is also confirmed by RSI and CCI indicators.
Disclosure: My ideas contain statements and projections based on assumptions on capital markets, and therefore inherently subject to numerous risks and uncertainties.
Before buying or selling any stock you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.
I am not a financial advisor
Healthcare: Closing on January 14thGood session for the Nasdaq Healthcare Index, that closed the day with a 1.30% gain. Bullish sentiment is still driving trades. However next session could be characterized by a retracement around the basis of the Bollinger Bands indicator (orange crosses).
This is a daily analysis.
Disclosure: My ideas contain statements and projections based on assumptions on capital markets, and therefore inherently subject to numerous risks and uncertainties.
Before buying or selling any stock you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.
I am not a financial advisor
LCI may start to climb after today's FDA approvalLannett stock has struggled lately due to opioid litigation and a weakening of its earnings forecast back in November. However, the company announced several product launches in December and early January, and today Lannett got FDA approval for, of all things, a cocaine-based anesthetic nasal spray. The stock has shown little positive reaction to any of this news, but that might change if analysts start to adjust their earnings forecasts to reflect the new product offerings. Despite its underwhelming reaction to the news today, I think Lannett may start to show momentum this week as investors digest the announcement from today.
Lannett has an attractive forward P/E of 6.84 and a history of beating analyst expectations on its earnings reports. Its last round of guidance was neutral, with increased administrative and sales costs offset by decreased tax burden and interest expense. Lannett should have enough cash on hand to cover its product launches thanks to a convertible notes offering last year. It has about $100 million in cash per its last earnings report, although with apparently $66 million in debt due toward the end of this year.
McKesson after-hours guidance raiseAfter-hours today, McKesson raised its FY EPS guidance to 14.60-14.80, about 2% above the consensus analyst estimate of 14.41. Its last round of guidance was disappointing, so this reflects a significant improvement in the company's fundamentals. Even though the guidance bump was only 2%, it could catalyze a much larger move in the stock price, which was already trading at a low forward P/E of about 10. Today's guidance implies a forward P/E of more like 9.7 based on today's closing price. McKesson has been in an uptrend anyway, so fortunately for me, I already owned some shares.
