Saturday, September 1, 2012

Pharma Stocks Remain Strong

…and I would be a buyer on a pullback on the daily RSI 40 level. This has been a very strong sector and the 2 stocks I like the best to buy are ABT and JNJ. They’ve mirrored the benchmark Pharma Index quite closely and I believe they will do well over the coming weeks to months.

If we hold above the bullish falling wedge we won’t likely test the support I’ve highlighted below and then one would have to chase a little to establish a position here. Should the markets pull back next week this is a sector I’ll be targeting. If we just continue to rise I’ll just let them go and take them off my watchlist but at a minimum they should head back to previous highs.

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