Not All Health Care Stocks Are Created Equal, So Play It This Way $XLV This morning, the leading health care stocks are trading lower to start the session. Politicians on both sides of the isle have been very critical of drug prices and health care costs. You can easily see and expect more political criticism of the health care companies as the Democratic party tries to find a 2020 nominee. President Trump has also vowed to lower drug costs, so where do you invest in this diverse industry group? Despite today's declines in most of the major health care stocks the over chart pattern of the Health Care Select Sector SPDR Fund (NYSEArca:XLV) is still looking good on the charts. This leading health care ETF holds companies such as Johnson & Johnson (NYSE:JNJ), Pfizer Inc (NYSEFE), UnitedHealth Group Incorporated (NYSE:UNH), Merck & Co. Inc (NYSE:MRK), Abbott Laboratories (NYSE:ABT), Medtronic Plc (NYSE:MDT), Thermo Fisher Scientific Inc (NYSE:TMO), Amgen Inc (NASDAQ:AMGN), AbbVie Inc (NYSE:ABBV) and Eli Lilly and Company (NYSE:LLY). This ETF is fairly diverse and is still showing a decent chart pattern on the bigger time-frames. At this time, the XLV is trading above its 50 and 200- day moving averages. As long as the XLV remains above these key levels this ETF continues to be in good shape. Should a major decline occur in the XLV then there should be major chart support around the $86.00 area. This is where the ETF was defended in mid-April 2019 and would likely be support again if retested. The bottom line is that health care stocks have become very difficult to trade and invest in on an individual basis lately. The best way to play the broad based industry group is likely through an ETF like the XLV. This ETF gives you diversity to the sector and holds some of the best companies in the world. Should the equity trade sideways or even lower it pays a 1.6% dividend while you wait for some appreciation to occur. Nick Santiago InTheMoneyStocks
Vmware Inc $VMW Keeps Dropping, Watch This Trade Level VMware Inc (NYSE:VMW) is a leading cloud software stock that has been declining since mid-May 2019. The stock topped out on May 16, 2019 at $206.79 a share. Since that high pivot, the shares have declined lower by 21.0% and are now trading at $162.98 a share. Traders and investors should now watch the $150.00 area as major chart support. This level was where the stock broke out of a one month base in early February 2019. Often, when a stock declines into a past breakout level it will usually be defended by the institutional money when it initially hits the support area. I will now be watching VMW for a potential long side trade when the stock trades down into this level. Nicholas Santiago InTheMoneyStocks
Surprisingly enough, even with the "Powell put" in play the yield on the 10-year U.S. Treasury note is just down 0.01 to 2.044%. One would think it would be falling more, but this is a market of dislocations. Thank God for the charts allowing us to see through the noise and make money! -Nick Santiago
Humana $HUM Pulls Back, But More Upside Is Coming In 2019, all of the leading managed health care stocks have been very volatile. Political pressure from both sides of the aisle have been the catalyst for the excessive whipsaw in this industry group. Stocks such as Humana Inc (NYSE:HUM), Cigna Corp (NYSE:CI), UnitedHealth Group Inc (NYSE:UNH) and others have been very susceptible to political news on a daily basis. Last week, the sector rallied sharply higher after the White House abandoned its plan to eliminate rebates from government drug plans. Unfortunately, these stocks are pulling back today after Presidential candidate Joe Biden proposes a public option for health insurance for anyone who wants it and will give power to Medicare to negotiate drug prices. Last week, the managed health care stocks all broke out on a technical basis. Humana Inc (NYSE:HUM) is one stock that should have more upside despite today's pullback. Today, HUM stock is falling by $4.48 to $286.77 a share. Traders and investors should now watch and see if this stock can consolidate on the charts as last week's break-out pattern suggests a move back up to the $310.00 level. This major resistance level is where the stock sold off in late February 2019. I will be be keeping this leading heath care stock on my radar for a bullish pattern development. Nicholas Santiago InTheMoneyStocks
Goldman Sachs $GS Pops After Earnings, Here's Where It Hits A Wall This morning, leading financial stock, Goldman Sachs Group Inc (NYSE:GS), is trading higher after reporting earnings. The financial giant is trading higher by $2.77 to $214.35 a share as investors celebrate the company's results. Many traders and investors are wondering how high could GS stock go before it stalls out. After all, the stock has been rising since June 3rd when it traded as low as $180.73 a share. Traders and investors can easily see that the stock will face major resistance around the $220.00 area. This key resistance level is where the stock broke down on volume back in early November 2018. Often, when a stock retraces back up to its former break down level it will be met with major selling pressure. Remember, there are traders and investors that have been holding the equity from that time and will usually look to get out of the stock when given the chance to get back to break-even. Nicholas Santiago InTheMoneyStocks
Railroad Stocks Fall Off The Track $CSX Today, most of the leading railroad stocks are declining sharply lower after a very weak earnings report from CSX Corp (NYSE:CSX). The company said it expects revenue to fall by as much as 2.0% in 2019. Prior to this report, the company was forecasting an increase of 1.0 to 2.0%. Currently, CSX stock is declining lower by $8.52 (-10.50) to $71.05 a share. CSX stock is now trading below its 200-day moving average, this puts the stock in a weak technical position. Traders and investors must now watch for further downside in the coming days and weeks ahead. The next major support level for CSX stock will be around the $65.00 area. This level is where the 100-week moving average is currently and should be defended when tested. Other railroad stocks that are falling in sympathy to CSX Corp include Norfolk Southern Corp (NYSE:NSC), Union Pacific Corp (NYSE:UNP) and Kansas City Southern (NYSE:KSU). Nick Santiago InTheMoneyStocks
Alert: KLA Corp $KLAC Nears Technical Short Level Shares of KLA Corp (KLAC) have surged since June from a pivot low of $101 to its current $125.50. Technical signals are now entering extreme overbought but pro traders think there is one more push higher. The technical short signal is at $128.50. At this level ($3 away) KLA Corp will tag a major gap fill and double top. This will trigger the highest reward/lowest risk short trade for investors. Note the chart below. Gareth Soloway InTheMoneyStocks
