Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Sympathy Play Off Of WAG

|Includes: CVS, Walgreens Boots Alliance, Inc. (WBA)

 This morning Walgreens Co.(NYSE:WAG) is declining sharply lower after reporting earnings that were not well received by the market. Walgreens stock looks to have some support around the $38.70 area and $37.45 area. Often after a stock reports earnings and sells off it is prudent to wait for a while for the stock to settle down and find a good pattern to trade off of.

Walgreens Co. is considered the leading drug store company in the sector. When a leading stock declines traders can look for other stocks in the industry group that could be under pressure to trade. This is called a sympathy play. CVS Caremark Corp.(NYSE:CVS) is declining lower by 0.34 cents today to $33.39 a share. This stock will have very important intra-day support around the $33.00 level. This is a likely bounce area for the stock should it trade down to that level.

Nicholas Santiago