Good for Your Health AND Your Portfolio

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Hey Gang! I’ll work out some kind of a standard format for my posts soon, but I would always like to present a trade together with a plan for the stop, profit, and target.

I don’t have a ton of time so here’s the trade.  Healthcare is the 2nd strongest sector determined by its bullish percent index rank (currently at 84% P&F buy signals).  It’s a simple, but effective way to rank sector strength.  The only stronger sector is utilities at 89% P&F buy signals.  If you’re not familiar with Point & Figure charting, it’s basically a way of taking time out of the chart and displaying only the price moves.  Being on a P&F buy signal means that the chart is making higher highs and higher lows.

I looked at the top 10 holdings for XLV and JNJ stood out for me as being in strong condition and a stone’s throw from its highs.  It is clearly making higher highs and higher lows within an established channel and has broken a short-term downtrend line.  Details are on the chart, but this trade risks approximately .50c to make $6.

STOP: 138.86 if below at EOD.  Immediate stop on channel break.

PROFIT TARGET: If you would like to take some money off the table during the trade, $143.13 would be a good option.  Sell 1/2, keep the rest for $145.32.

FINAL TARGET: $145.32 to sell all or remaining.

Good luck!