Market Movers: Buy Oil, Sell Retail and Big Pharma
By Adam Lass
In this article
We use the conclusions from our major market sectors study as a starting point for our weekly options plays.
The healthcare sector is now giving off the weakest signals.
Get the specifics on just how far MDT can fall - and more importantly how you can double your money off this move…
Market Sector Investments: Equating Sector Study into Profits
Here's an inside look at how our WaveStrength Options Weekly service has been able to deliver remarkable returns for our loyal readers.
First off, Adam studies the strength and weakness of major market sectors -- and we use the conclusions from this study as a starting point for our weekly options plays.
Armed with a bullish or bearish forecast on these specific market sectors, we then analyze the single stocks within each sector to isolate the strongest or weakest candidate.
Once we have identified the strongest (or weakest) stock within the strongest (or weakest) market sector, it's then my job to make an options play that offers you the biggest possible return for the smallest possible risk. So what signals are we getting right now?
As Adam outlined above, the health-care sector is now giving off the weakest signals. In fact, I have already used this bearish view to make 82% in three short weeks. But as you can see, the breakdown is not over yet. That's why Adam and I just established yet another downside put play in the health-care sector this morning -- and it's not too late for you to get on board. If all goes according to play, you could have the opportunity to make between 125 and 238% as shares of Medtronic (MDT:NYSE) move lower.
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Market Sector Investments: An Entirely Different Story
When I look at MDT, I see a company that should be doing well -- but is simply not delivering for its shareholders. Its diabetes segment, for example, serves a rapidly growing medial need in the United States. Combine that with its Cardiac Rhythm Disease segment (which offers implantable devices and external defibrillators) and its Spinal and Navigation segment, and it would appear that MDT should be experiencing strong yearly growth. But one look at the MDT stock chart tells an entirely different story.
On March 31, 2005, for example, MDT closed at $50.95 per share. And as I write just under one year later, MDT is now trading for $49.08 per share. That's a 3.8% loss during a 12-month span that witnessed the Dow gain 15%. Talk about underperformance! And get this: The bearishness is far from over.
To get the specifics on just how far MDT can fall -- and more importantly how you can double your money off this move -- please enroll in our WaveStrength Options Weekly service. That way, you can use our weekly sector studies to make profits as stocks move UP and DOWN each and every week!
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Bryan Bottarelli is the head trading tactician for the WaveStrength Group, and is a contributing editor for Taipan Financial News. Coming off the floor of the Chicago Board Options Exchange (CBOE), Bryan uses WaveStrength chart forecasting to develop wining options plays for his service called WaveStrength Options Weekly. Bryan is also the lead editor of BottarelliResearch, an elite membership service that he independently publishes himself.
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Medtronic: The world leader in medical technology.