Rotation Beginning?
Things got a bit shifty again this week with $MU ( ▼ 2.55% ) and $SOXL ( ▼ 13.99% ) yesterday post earnings and it looked as if it was going to get worse before a late day rally but we’re lower again here pre-market to end the week. Within all of this dispersion was underlying rotation into staples and healthcare names and as we end Q2 that likely continues.
This is a theme I've been hammering on the last few months in the LongVol Report as well as on my weekly Stock Market Call Podcast.
The BTD crowd is finding out that this dip may be week and names like $MSFT ( ▲ 5.19% ) are testing April tariff lows this week.
$UNH ( ▲ 2.72% ) Triggers
One name that is working is one we began to flag a few months back: United Healthcare.
I’ve been waiting on to add into was $UNH ( ▲ 2.72% ) and after some strange price-action (likely shaking out weak hands) we finally got above our trigger to add into the long this week.
I flagged it again in this weeks report as something to watch.
$410 on my models was the area to watch and we began to stage the attempts the last few weeks and then again on Wednesday before a shakeout. When that happens, I usually just cut any new risk I’ve added then wait to add - we got that add yesterday and now I have a full risk position.
Trigger: A price level that based on our models that gets us into a new position or to add risk into an existing position.
Make sure to follow me on X here.
The new issue of the report will be out Sunday for readers.
I’ve also added a Founders note here.
Yours in profits,
Daniel X. Bustamante