March 23rd, 2010

More Health Care Stocks

It’s been building for a few months but now that it seems the health care bill has passed and is about to be signed into law, a wide range of health service related stocks look like they’re perking up and are about to make some headway.

We were premature but saw the opportunity in the making for these stocks then but they look prime now. In addition to the three identified in “HMO Stocks: AET, UNH and WLP” on December 10 can now be added hospital, nursing home and outpatient/homecare stocks. Those in the groups that appear to me to have clear, strong, long bases or consolidation patterns include (click on image to enlarge):

  • DVA (Davita)
  • GTIV (Gentiva)
  • LCAV (Lca-Vision)
  • DCAI (Dialysis Corp)
  • BKD (Brookdale)
  • KND (Kindred)
  • SRZ (Sunrise Senior)
  • ENSG (Ensign)
  • THC (Tenet)
  • CYH (Community)
  • UHS (Universal)
  • LPNT (Lifepoint)

I couldn’t include all the charts due to space and time constraints. The above are included only on the merits of their charts; you should, as usual, do your on diligence in evaluating these and other stocks based on both their technical and fundamental merits for your own portfolio and investment style.

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  • DG

    Hi Joe –

    The last few posts have all been about stocks to buy. But what if we're at the end of the bull market? Can you please make a post about 'back up options' – just in case everything turns on us, and these stocks you're picking do not break through their upper resistance levels?

    Particularly, an analysis of highly likely resistance levels that we might hit during the week of the new moon of April would be helpful.

    Thanks.

  • kunal00

    LCAV looks to be a powerful breakout as its testing resistance from a year back. Very nice find. with the market tilting a bit just grinding out small gains. Powerful setups within sectors that have a catalyst should provide the best risk to reward

  • skogie

    Not sure where to ask this question so I'll start here. Joe, or anyone else, do you know of a way to run a screen that would identify stocks trading above or below their relative spider etf? For example, I would like to run a screen that would identify stocks that are a part of the XRT etf that are trading relatively weak to that etf. Any guidance much appreciated. Thanks.