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Posted November 23, 2020

Scott Stewart

By Scott Stewart

STRONG Buy Signals in the Pharmaceuticals

Welcome to the Rude Awakening for Monday, November 23rd.

Lots of activity today

Recording about an hour outside market open, the S&P was looking up about 23 points, the NASDAQ looking up about 50 points.

Well see if that strength will carry through the day.

Again, lots of activity coming at us this week.

And where do we find most of it?

The Pharmaceutical Sector Is Booming

Pharmaceutical stocks are showing a LOT of strength right now. Unsurprising, given the massive desire for a vaccine and many companies making headway in their testing and emergency approvals.

This means there are a lot of companies in this sector giving STRONG buy signals.

The first one you want to look at is Merck & Co., Inc. (MRK).

MRK is implying an up open this morning, likely driven by their recent acquisition of the privately held company Oncolmmune. They paid $425 million for it and its developing COVID therapy.

The next one on our list is AstraZeneca PLC (AZN).

In conjunction with Oxford University, they have received approval for their COVID vaccine, which they report has an efficacy rate up to 90%, but its shown results as low as the 60% range.

AZN is looking to open slightly lower on the day, which might make it a good time to buy, given positive news coming in.

Next up, Regeneron Pharmaceuticals, Inc. (REGN). They have just received emergency use authorization from the FDA for their vaccine. This one is looking to pop at the open today.

We also have Eli Lilly and Company (LLY), who has received limited authorization use from Canada for their COVID vaccine.

LLY is also looking to have an up open, and its trading above its 50day MA, indicating a buy.

All in all, a heavy day in the pharmaceuticals sector!

But there is one stock in a totally different sector that is topping our watchlist

Our #1 Watchlist Pick

Roku, Inc. (ROKU) is showing massive strength right now, looking to open with a big pop this morning.

They are currently trading at about the $260 level, and their fair valuation is all the way up to $315.

We have this on our watchlist for BOTH a buy and a short, as it has shot way up in just the past few weeks.

If we continue to see momentum in this stock and it can hold these levels, that would make for a buying opportunity.

However, if we see a retracement in this one, that would show some weakness making for a good downside play opportunity.

The stock has definitely seen an overextension in its pricing over the last week and a half

So, definitely one to keep an eye on for either end of profits.

Thats it for today, folks.

Have a great, safe trading day

We will have a shortened trading week due to the holiday, so tomorrows Rude Awakening will be the last for this week!

See you again tomorrow.


Scott Stewart

Scott Stewart

Editor, Rude Awakening

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