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St. Jude Medical Might Benefit from Positive Merck and Boston Scientific Earnings

|Includes: BSX, MRK, St. Jude Medical, Inc. (STJ)

The Oxen Group is liking the prospects for St. Jude Medical Inc. (NYSE:STJ) for Monday. The market is definitely going to be decided by tomorrow morning's earnings reports, so this recommendation is preliminary with an update to be posted tomorrow morning about exactly what we think will happen. St. Jude is definitely looking bullish after medical device company Boston Scientific (NYSE:BSX) posted very positive quarterly earnings with a 61% gain in profits. The rise came from high demand and sales of its cardiac device products. This should be positive for St. Jude because the company is also a medical device maker with a similar business. The company, additionally, is in a nice position to increase on the positive news that sent BSX up 6% in after hours. The company has not jumped up to an overvalued, oversold movement like many companies over the past week and a half. However, that movement in the market definitely means pullbacks will be occurring. Tomorrow could be that day as the market had little news this evening to pump futures, which are currently down. However, tomorrow morning, important earnings from Caterpillar, Coca-Cola, State Street, Merck, and Southwest Airlines will decide the market. For St. Jude, Merck's earnings are extremely important since it such a key healthcare stock. If those earnings are positive, watch for STJ to make a positive move. Unlike other healthcare companies that are relatively overbought and may peak out, STJ should not have that movement, which makes it positive. Check back though to see our morning update.

Entry: Recommend buying in 10-25 minutes into session.
Exit: We recommend exiting after a 2-4% increase.
Stop Loss: We recommend a 3% stop loss on all buy in prices
Upper Resistance: 40.75 - 41.00