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A Healthy Alternative (CAH)

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AUG 8 2023
 
   
SCOTT WELSH’S TICKER TALES
Cardinal Health Could Be Setting Up For A Long Term Run

Suddenly, things are looking bearish out there.

Moody’s just came out with more downgrades for several U.S. banks, and no one wants to hear more bad news about banks.

Plus, Italy just announced a tax on their banks’ windfall profits, and the market is worried that idea will spread all around Europe.

And China is continuing its struggles, as its import/export data came in weaker than expected. 

Bearish news all around.

But you know what works when the world appears negative?

Health.

Because at least we have our health.

During bearish times, many institutions run to health stocks because they’re typically recession-proof.

And Cardinal Health (CAH) is getting close to a possible breakout point.

Here’s the chart:

 
 
 

CAH has been on a run during this mini bearish pull-back. 

It could be ready to run if things stay negative and it breaks above $95.10.


Happy trading,

— Scott Welsh
P.S. As a reminder, this play is based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.

 
GUEST POST: JACK CARTER
Taking The Big Swings May Not Mean What You Think It Does
 

When you envision taking big swings in the market, what comes to mind?

Reckless, speculative bets? Putting down a huge chunk of cash on a hot tip you heard from your barber?

Listening to the talking heads on TV as they pump their stocks? (please tell me you don’t do that)

While trades like this might get your adrenaline going, the reality is that they often lead to disappointment.

But don’t worry. There is a smarter way to take "big swings".

For decades, I have been a firm believer in safe and reliable income trading as my main method of playing the stock market.

True, the wins may not boast the jaw-dropping percentages you hear people brag about at work, but let's face it — no one brags about their losses.

And when you dig into the statistics, you'll find that most speculative, directional trades end up as losses.

Now, despite my preference for income trading, I’m about to say something that might come as a shock:

 
Go ahead  — place some speculative trades…

But with one critical condition: Do it the right way.

And what's the "right way," you ask? It's all about placing bets with a high likelihood of winning. (more on this a second)

But we know that even the best directional trades are never a sure thing, so there’s a second layer you need to add to your plan:

Your winners must be massively outsized. I’m talking about targeting winners that are at least 2.5-3x the size of your losing trades.

That’s it. Two simple rules to follow.

But simple doesn’t mean easy.

See, it’s all the stuff in the background that allows me to follow those two rules to a “T”.

My ability to follow those rules lies in a treasure trove of data I have. I consider it to be the most incredible data pool I’ve ever seen.

It’s a list of stocks, along with the specific dates when they have historically spiked upward for at least ten years in a row.

Using this incredible pool of data, I can take those big swings every single week.

It’s too much to explain all the details here, but I recently shared all the details on camera with Roger Scott. You can watch it here.

Redefine what it means to take big swings in the market. Forget rolling the dice.

Discover a smarter approach.

Trade safe,

— Jack Carter
P.S. This video disappears tonight at midnight.

It’s all part of a pilot group I’ve been filling with traders who are going to help me refine this strategy and help me make it even better than it already is. I urge you to click here to watch the video before we take it down.

 
   
 

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