After scanning through the daily WatchList this morning there was a theme that I picked up on early. The stocks that were pulling back to support and had solid long-term trends were coming from two sectors - Drugs and Utilities.
The two drug stocks that were at the top of my list were Allergan ($AGN), the maker of Botox and breast implants and Celgene ($CELG), a biotech firm. The two companies are in healthcare, but are not very similar. But their charts are both very bullish - pulling back to support after hitting recent highs. This is the type of pattern we are looking for in a market that is now trending higher.
The two utility stocks were Nisource ($NI) and Centerpoint Energy ($CNP), both are diversified utility companies. The charts are almost identical to $CELG and $AGN - they are both pulling back from recent highs to support. The bonus with the utility companies is the dividends: $NI pays 4.2% and $CNP 3.9%.
I do own a small position in $AGN for clients and may be looking to add more or invest in some of the others mentioned in this post.
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
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