Bulls: Reach for These Drugs to Ease Your Mood

I made the mistake of calling today’s 1.25% sell off in the S&P 500 a smackdown earlier on twitter. I was comparing it to the move in Treasuries which was a lot more muted but nonetheless, it really was not a smackdown. Although, it probably felt like it to many with half of it coming after 2:30 and nothing like it happening recently. If you are one of these people then I offer you a sedative, or upper, or viagra, whatever you want. These drug stocks are still poised to breakout.

Bristol Meyers Squibb, $BMY

Bristol Meyers Squibb, $BMY, has been consolidating in a bull flag since mid January. It has now worked off a technically overbought condition on the Relative Strength Index (RSI) and negative Moving Average Convergence Divergence histogram (MACD) has stalled. A move over 37 triggers a breakout with a target of 39.50. Of course a breakout can happen either way so watch the downside as well, for a move under 36 for a retrace to 34.20.

Celgene, $CELG

Celgene, $CELG, gave it a go at a break out early today and then got sucked back into consolidation. It still has a strong set up for either direction though. The MACD is improving and the RSI is bullish, so lets focus on the upside. A move over 102 is the trigger. If you are skittish after today’s pullback after the trigger, just give it a little more room, say to 102.50. If it loses support at 96 then you can become bearish with your sights on the gap at 87.50 or more.

Pfizer, $PFE

Pfizer, $PFE, is testing resistance at 27.80 after a pullback to 26.80. The Measured Move higher takes it through the resistance to 28.40 on the next leg up. The bullish RSI and MACD about to cross to positive support a continued move higher.

So do you feel better yet?

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Dragonfly Capital Views Performance Through February 2013 Expiry

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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.

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