CVS Caremark Corporation Message Board
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WAG/CVS pattern bears watching
Despite CVS showing a strong report and WAG weakness in its, pzttern-wise, it appears that CVS moves upwards in spurts on good news but "give back" on a slow but consistent daily pattern. WAG reverses this pattern, up consistently, daily, but down hard on bad news. Both of these patterns are reflective of relative support and support/breakout levels. WAG is still heavily supported at breakdown levels; CVS has little support at breakouts, but rather has block selling at these. Much also revolves around the buyback strategy. A solid play is WAG to run through $38.50 and CVS to fall back to $46 in the very short term. Unless you are into volumne transactions, looks like nothing for we little players for a while. craig
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Once again, the pattern of CVS trading down near daily against WAG and major healthcare players excepting on significant posditive news (i.e., CVS runs slightly UNDER market following "strong news" rather than WAG and sector that can actually with above and above market and counter-market) CONTINUES. CNBC/FF tools show CVS ratio of undermarket performances in positive market but well above average but very strong on market downsides. The buy back was a great tool against this pattern of trading. To break out, CVS not only will need a strong news trend but an even stronger market. However, CVS' pattern of low volitility is as others have reported, "a nice safe haven." I sww many concerns for any type of growth as "selling season" approaches due to the MHS/ESRX merger and the latters resiliency vis a vie margin pressure. The retail side should now become "the strongest part" until there is a clear expression of market reaction to the ESRX/MHS selling season issue. In all, I see no way that CVS has the strength to break resistence at $48-49 but it would take a major market selloff or loss of a major contract before there is market jitters pointing to under $44. SHORT TERM: HOLD (or move into ESRX and WAG as well). LT (ditto). Happy New Year, craig
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You are right. I could have invested in both plays, but, what happened is that I have been involved for a long time with CVS that I understand pretty much its story and nuances on stock movement and action. I agree, we need resolution of the Obama induced recession story for this and so many other issues to do better. But, this is kind of a good place to keep money parked and hiding from what Obama damage may happen soon.
Sentiment: Buy
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agreed...CVS has major resistance at $49....but on the flip side has solid support around $45. CVS needs the entire market to flourish to break into the 50's
- 1 Reply to opticaofoz
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complete agreement here. WAG is a nice $2-3 buck pay on volume
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