Since the presidential election, healthcare stocks have been hit with selling on uncertainty over what happens with the Affordable Care Act and a Trump administration. Sheryl Skolnick, director of research for healthcare services at Mizuho Securities, downgraded the sector immediately following the election, citing increased uncertainty facing hospitals and health care facilities. Hospital stocks like UnitedHealth Group (UNH) recently bounced back from a bout of selling, which Skolnick says means the worst case scenario is likely off the table, and that some parts of Obamacare will remain. Skolnick says it's also clear what will happen with pharmaceutical pricing. But Skolnick says Mizuho does see opportunity right now in drug distribution companies like Amerisource Bergen (ABC) and McKesson (MCK) .
More from Video
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.
Breaking down an approach to the long side of this biotech stock.