Finance Banter's  Instablog

With the major drug manufacturers breaking out it is worth putting MRK, PFE, BMY, JNJ, ABT, WYE, and LLY on your watch-list. A simple way to gain exposure to the entire sector is through the PPH. Given that these are not high beta momentum stocks I tend to favor a swing trading approach to this sector.

The break-out on the PPH is 64.06, so an initial stop for more risk adverse traders would be around 63.50. However, the sector would remain in bull mode as long the PPH held the $62.00 area. 



You may not care for the television network, but CBS looks like it wants to make another move higher. The break out is 10.50, so an initial stop for scalpers of 10.20 makes sense. If you treat this as a swing trade I would certainly stop out below 9.55.




The last one for today is DAN. The two buy levels I would watch are 5.25 and 5.40, with the later being the true breakout. A possible stop would be 4.95, but given that this small auto parts stock has morphed into a momentum stock I would suggest traders adjust their stops to their own risk tolerance. 

Disclosure: No positions were held at the time of publication, though that may change at any time.