The S&P is having a tough time breaking through resistance levels at 800. As mentioned earlier, I would take a little profit here, just to book some gains, in case we retrace further. As for sectors that have strength, steel is probably top on the list. Names like RIO, NUE, CLF, X, SID, SCHN, PKX, HSC, MT, AKS, TX, and CMC seem to have strength. I like CLF the best for a trade; however, none of these names have great balance sheets.
With a market like this, I want to keep high cash levels and look for firms that have great balance sheets. With that being said, value hunters are buying up TTWO, pushing it above $8. If this rally holds, I wouldn't be surprised to see TTWO print $10 by Easter. As for DRYS, I sold my entire stake. If I had to do it over again, I would have trimmed 50% and let the other 50% ride. I still have my WRI short and may build in over time; however, I don't want to get trapped in this rally.
Healthcare has pulled back and I will continue to watch and perhaps take a few positions. Use the updated Healthcare Ranker as a guide and take a look at a few of the names. I like HUM and UNH the best.
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