CURE trade ideas
CURE price moved above its 50-day MA on June 19, 2020This price move could indicate a change in the trend, and may be a buy signal for investors. I found 46 similar cases, and 42 were successful. Based on this data, the odds of success are 90%.
Healthcare volatility could be good for swing tradersA recent survey of analysts by FactSet revealed that we're in an "earnings recession" right now and that it's expected to get worse in the next quarter. Certain sectors have been particularly hard hit, namely mining and semiconductors. The sectors that are expected to report the best earnings this quarter are healthcare, utilities, real estate, and gold. These are defensive sectors that usually do pretty well when the rest of the market is down. Utilities and gold are priced a bit high right now, but could be good for an entry if they pull back. Real estate stocks are a slightly better value, but would also be better after a pullback. Healthcare stocks are cheaper, but they face a lot more political risk, especially with Elizabeth Warren leading the Democratic pack. Health insurance and pharmaceutical companies are at particular risk from "Medicare for All."
Given the extremely mixed outlook for health care right now-- its bullish fundamentals and bearish political risks-- I expect to see a lot of volatility in this sector. Direxion's and ProShares' leveraged funds are great for playing that volatility. For upward moves you want CURE, and for downward moves you want RXD. Alternatively you could play the pharmaceutical equivalents, LABU and LABD. Look to buy and sell oscillations between critical support and resistance or overbought and oversold levels. Roughly speaking, I'd guess that healthcare outperforms through earnings season but pulls further back as the election heats up. You can see from CURE's chart that this sector has been downtrending overall. I expect that to continue until at least the primary. (If a market Democrat like Biden gets nominated or if Trump gets re-elected, that would be hugely bullish for this sector. Hugely discounted healthcare stocks could surge overnight.)
CURE buy for the LONG (2+ years)Buying at ~53.37. taking profits at red line.
my fair value for this etf is $62 per share.
Long CURE 3:1 Reward/Risk, Risk $100 to make $300.CURE is at the bottom of the longer term trend and we have an opportunity to place a trade for continuation of the trend.
Entry (Stop Limit Buy): Stop $44.77 @ Limit $44.87 (10 cents above previous high)
Stop Loss: $43.18 (10 cents under the previous low)
Profit Target: $49.93 (3x risk)
CURE 3x ETF. Potential 3 drives + DivergenceMessy chart. Some potential buy targets through confluence support shown.
Trend continuation in healthcare is a high probabilty100 shares should be the maximum allocation in your portfolio on a $100,000 of capital. Once price exceeds $150, trailing stop should rise to $135 minimum. I do not actually use stops when trading equities (only in FX). If price closes below my acceptable point of risk I exit my position before market closes.
Update 4/16: Closed all at 154. It smells funny.
Update Stock Split. May 21
A 16 years old review on a bullish direxion chartThis chart is affected by all news for sure around the shut down, it is a stock to be trade various times and can give some oportunities. ( I'm neutral for it, even if the technical indicators say it is a bearish signal, i would recommend to play it with the news ) good luck guys.
