Scanning the stock charts for some low-risk high-reward trade setups this early Monday morning, I’ve zeroed in on a short-sell candidate in the biotechnology sector. I’ve been thinking for quite some time now that healthcare stocks are going to start losing their rich profit margins they’ve been enjoying for quite some time now and with the change of leadership in the White House, and now with this current economic environment, 2009 could be the time the medical stocks start selling off even more than what they have already. In fact I would forecast and predict this year that the healthcare stocks might be the next financial disaster to hit the stock market and economy.
Short-Sell Gilead Sciences. Ticker GILD
Sell Entry: 49.73 to 51.04
Take Profit Areas
46.81 to 45.35
41.68 to 41.18
35.53 to 33.40
Some of My Reasons for Selling Gilead Short
Number one its showing a major ABC sell setup with a nice tight stop-loss making this stock a very low-risk very high-reward short-sell trade if the market proves me right. Two, way too much optimism. I’m reading current articles from other analysts giving Gilead buy recommendations for a variety of reasons. I see no other short recommendations on GILD right now. Jim Cramer on his “Mad Money” TV Show on December 22nd said “I'm recommending Gilead Sciences and will continue to pull the trigger on that one." Cramer has been wrong so many times this year, it might be continued “Easy Mad Money” to take the other side of the trade on his stock picks right now. Three, the market is still heading south in my opinion. Four, the medical sector rich profit margins are going to get squeezed in this economic environment.