Defense Stocks Still Set Up

Drugs ($DRG.X | Quote | Chart | News | PowerRating) and healthcare ($HCX.X | Quote | Chart | News | PowerRating) still look poised to continue their uptrends out of a high level base. And, it appears that they will have enough momentum to clear recent overhead resistance. Therefore, continue to look for buying opportunities in calls and call spreads here.

Once again, many defense issues listed in the on the  Pullbacks Off Highs List look like they have the potential to resume their uptrends. Look for buying opportunities in calls and call spreads here.

Looking Ahead

As mentioned Friday, many sectors such as retail, broker/dealer and biotech have shown nice strength and will likely set up soon. 

Best of luck with your trading on Tuesday!

P.S. Reminder: Protective stops on every trade!