February 4th, 2009

Healthcare: MTXX, SIGA, CMN and SXCI

Well, at least one day down and the bottom-boundary trendline of the symmetrical triangle held support. A few more days like yesterday and I’ll next be writing about the outlook for breaking above the upper-boundary trendline. That area is really interesting since so much is converging in that ara:

  • the upper boundary of the symmetrical triangle
  • the upper boundary of a steep downward-sloping channel covering the worst of last year’s bear market crash going back to last August
  • the 60-day moving average and
  • not too much higher (around 4%), the 90-day moving average

Will market participants see all this resistance overwhelming or will traders large take a move towards and above each one of these obstacles (along with favorably received Government action) be a signal for more money to be moved out of Treasuries and into riskier equities.

While still mostly on the sidelines myself (80% in cash), I have edged out into some equities, many also in the Model Portfolio. But I’m always on the lookout for more stocks with good charts that also have met or are close to meeting the additional criteria of have a “golden cross”. Many of these stocks happen to be in the defensive healthcare industry groups like pharma, drugs and biotech. Examples include:

  • MTXX (Matrixx Initiatives)

  • SIGA (Siga Pharma)

  • CMN (Cantel Medical)

  • SXCI (SXC Health Solutions)

Note: We’re going to be having some escapee’s from the cold Northeast visiting with us here in FL (also colder than usual) for a few days so my postings will be spotty. Hope to be back with a steady stream of charts and market analysis by Monday.

Subscribe below or click here to learn more about help for navigating turbulent markets.