Two Sectors Just Tried and Failed - And That's Great for Us
By Blake Young
"Breakout" is a word you're going to hear a lot if you spend more than three minutes with me in my daily TheoChat sessions. They're significant events in the daily life of a stock.
For folks who are new at this, it means pretty much what it sounds like. Breakouts are when price plunges through support (on the way down) or smashes past resistance (on the way up) on higher volume. When breakouts happen, there's a pretty good chance whatever stock, sector, or index you're tracking will continue in that direction.
Now, it can be just as important when breakouts fail - as two biggies just have.
Technology and healthcare have both tried for a breakout… and failed, courtesy of massive economic forces rocking the boat.
One of these is a bearish setup, and the other is actually bullish. This is giving us the opportunity to fade tech and scoop up healthcare stocks at a nice discount.
We're looking at stocks like Microsoft (MSFT), Salesforce (CRM), Johnson & Johnson (JNJ), CVS Health (CVS) and a whole lot more.
Here's what you need to know…
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