Individual Stock Trades: Is a Rotation Underway?

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I wanted to look at a few individual stock names, but not overload the regular Opening Print with it, as many traders don’t trade individual names and just stick to the indices.

With that in mind, there are a lot of healthcare names below. I would not trade them all necessarily. Assuming they set up correctly, we have to size correctly. Meaning, we don’t want an overwhelming concentration of these names, as many or all will likely trade together and in similar fashion.

So if you take a few of these setups, consider smaller size to compensate for the concentration.

Also, keep today’s S&P setup in mind, as the indices come into the session under fire. A failed bounce may keep most of the setups from triggering.

However, if healthcare and defensive stocks hold up today, could we be seeing a notable rotation underway (i.e. out of tech)?

ABBV

Decent bounce off the 21-day on Tuesday, but robust action on Wednesday. Daily-up over ~$161.50 could justify a long position.

Small first trim area would be $162.50, ideally it would be $163+ though.

Stops can be tight at $158.

XLV

Yesterday’s regain of Tuesday’s low was the ideal entry, but daily-up over $134.15 can get us long as well.

$134.75 to $135 is an ideal trim area (small trim is okay). Conservative bulls can use this week’s low as their stop (~$133). Aggressive bulls can use last week’s low (call it $132).

BRK.B

Would absolutely love a dip down to the $317 to $320 breakout area + 10-day ema combo.

~$313 would be a reasonable stop. $322.50 to $323 would be a reasonable upside trim area.

LLY

Eli Lilly running into resistance near $375, but a nice doji close after a near-tag of the 10-day ema.

Daily-up over $370.50 could put $375 back in play.

Kind of wide-risk, but $362 to $362.50 would be a reasonable stop-loss.

Another setup would be an undercut of yesterday’s low and tag of the 10-day ema. If the latter holds, we could buy the regain of Wednesday’s low at $367.30. Aggressive bulls can use the stop-loss laid out above. Conservative bulls can use a stop just below the session low.

CAH

Last but not least, the BRK setup would be the ideal setup in CAH, which is running into $80 to $82 resistance.

Of the healthcare names, CAH looks the most vulnerable, but if it holds $78.50, it looks good for a possible scalp.

Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.

Remember: Not all setups will trigger. Not all setups will be profitable. Not all setups should be taken. These are simply the setups that I have put together for years on my own and what I watch as part of my own “game plan” coming into each day. Good luck!