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Buy This Healthcare Stock & Avoid the Sickly Picks

One bullish pick and 13 unlucky stocks—here’s how to play them


My Power Options system identifies the most volatile and liquid stocks for option trading or short-term stock trading, and this week it’s showing overall weakness in the hospital supply, management and pharmaceutical areas.

Use the following information to help you with your own options or short-term stock trading program.

Guarded Stocks

These hospital supply stocks are in a downward trend, with huge downside potential. Plenty of opportunity for puts here.

  • Abbott Laboratories (NYSE:ABT)
  • C.R. Bard (NYSE:BCR)

Backing and Filling

These stocks are in an upward trend, but have temporarily fallen from higher prices to “fill” lower price areas.

  • Johnson & Johnson (NYSE:JNJ)
  • Coventry Health (NYSE:CVH)
  • Eli Lilly & Co. (NYSE:LLY)

Problem Stocks

These stocks are in downward trends, and have the greatest potential for downside momentum.

  • Boston Scientific (NYSE:BSX)
  • Biogen Idec (NASDAQ:BIIB)

Sell Watch

Sell these stocks on any further weakness—they’re not worth the heartache.

  • Merck (NYSE:MRK)
  • Astrazeneca (NYSE:AZN)
  • Pfizer (NYSE:PFE)
  • Bristol Myers Squibb (NYSE:BMY)
  • Elan Corp. (NYSE:ELN)
  • Humana (NYSE:HUM)

And the Winner Is…

  • Baxter Travenol (NYSE:BAX). Baxter Travenol is a medical devices, pharmaceuticals and biotech company that serves patients with chronic and acute conditions. BAX stock has been very strong over the long term and currently is within a dollar of its 52-week high. With low volatility and support at $61, there shouldn’t be any unpleasant surprises. Buy this one on dips—my Power Options system is showing a positive story unfolding here.

Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.


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