Categories: Momentum Trader Alert HotlinesStock Market News

Recommending a Big Pharma Play with Growing Momentum

With U.S. stocks pulling back sharply on Friday, you hit three of your stops on your current Momentum Trader Alert positions, booking some solid double-digit-percentage gains.

Stryker Corp (SYK) stopped out at $141.90 for a 10.33% gains. The Cooper Companies (COO) stopped out at $236.15 for a 20.01% gain.

In addition, Broadcom Ltd (AVGO) stopped out at $248.50 for a 10.48% gain.

This week’s Momentum Trader Alert takes you back into the realm of pharmaceuticals and biotech.

Incorporated in 2012 and based in North Chicago, Illinois, AbbVie Inc. (ABBV) is one of the nation’s largest pharmaceutical companies. The company’s three most important drugs on the market today are Humira (rheumatoid arthritis), Imbruvica (cancer) and Viekira Pak (Hepatitis C). AbbVie started its corporate life as a spin-off of Abbott Laboratories (ABT).

AbbVie Inc. (ABBV) versus the S&P 500 year to date.

Momentum Trader Alert Analysis

Recommendation

Buy AbbVie Inc. (ABBV) at market today and place your stop at $65.00.

I am holding off on recommending options for now as last week’s sharp move upwards has made the options very expensive.

Portfolio Update

With United Technologies (UTX) pulling back last week, I am recommending that you buy the UTX August $120 calls (UTX170818C00120000), which last traded at $3.25 and expire on Aug. 18, to take advantage of the stock’s coming rebound.

Sincerely,

Nicholas A. Vardy

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Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.