Bulls: Reach For These Drug Stocks To Ease Your Mood

I made the mistake of calling yesterday’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.

Disclosure: The information in this 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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