Prescription for a Fall
- Posted by Greg Harmon
- on October 22nd, 2012
Many are jittery about the broad market but individual stocks are sending some clear signals. Two in the healthcare space are writing a prescription for a move lower, Express Scripts, $ESRX and Allscripts, $MDRX.
Express Scripts, $ESRX
Express Scripts, $ESRX, has been consolidating after a long run higher but is showing symptoms of a pullback. The Moving Average Convergence Divergence indicator (MACD) has been running negative for almost 2 months, with the Relative Strength Index (RSI) trending lower as well. Now the price, the most important piece, is testing support for the third time and from a lower high. Look for a break of 62 to start the next leg lower with a gap to fill to 56.83.
Allscripts, $MDRX, has a similar story. The MACD has just crossed to negative and the RSI is pulling back from a technically overbought condition. The 200 day Simple Moving Average (SMA) has been driving price lower and has now filled the gap and continues. Look for a break of support from the previous flag at 12.80 to retrace to 11.
Dragonfly Capital Views Anniversary Celebration
It Ends Today! The Opportunity to join the Dragonfly Capital Views Premium Membership on an Annual basis is available for only $600.
This is 20% off of the standard annual subscription price and nearly 45% off of a rolling monthly membership! Don’t miss this limited opportunity! After today it reverts back to $750.Sign up here.
Want to learn more about Dragonfly Capital Views?
About the Service
The premium service starts with an in depth Technical Analysis of the Macro Markets and their influencers. Reviewing the Equity Indexes, Gold, Oil, Bonds, The Dollar, Foreign Markets and Volatility and assessing the upcoming week. This is delivered Saturday morning. On Sunday you get 5 exclusive trade ideas culled from reviewing over 900 individual charts. Additionally there are 5 more ideas that I offer high level analysis to the public, but then expand with detailed triggers, stops, support and resistance levels and profit targets and how to adjust them only to premium users. The Top 10 Trade Ideas are screened against the potential to provide a 5 – 10% return in under 10 trading days. During the week I offer updates when pertinent to these trades or the market mood. I also offer 1-3 additional trade ideas daily, with the same detailed trading plan. These could also be good set ups from the charts but often are earnings related. Most of these mid week ideas are options focused. Many trades are proposed with both stock and options idea, and sometimes several options trades so you can choose according on your risk tolerance. Finally, you get access to me, to ask about these trades, the market or anything else.
All premium material is posted to the blog under the premium page. You can subscribe to receive it via e-mail or RSS feed. I also post it with a link on both StockTwits and twitter.
In summary you get at least 30 – 45 trade ideas and an expert technical review of the macro market each week. What are you waiting for. Come join!
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- The mosaic of Intel points higher
- Top Trade Ideas for the Week November 30, 2015: Bonus Idea
- Top Trade Ideas for the Week of November 30, 2015: The Rest
- Top Trade Ideas for the Week of November 30, 2015: The Rest Premium
- Top Trade Ideas for the Week of November 30, 2015: The Best
- SPY Trends and Influencers November 28, 2015
- Macro Posts This Past Week
- Macro Week in Review/Preview November 27, 2015
- How this Week’s Top 10 Performed, November 27, 2015
- Black Friday Sale on Gold