Here is your trade on $MRK – April 12, 2023
This is Dan Fitzpatrick and I want to look at Merck ( NYSE: MRK ) today, which might feel kind of random because the healthcare stocks aren’t exactly the headline grabbers. But of course, if you look at this chart it has been pretty choppy and pretty sporadic, but the trend has kind of been up.
Here’s why I am showing this, aside from the fact that the chart looks good, it really does, it would be nice to see this thing narrow a little bit more. But if you look at the way this is moving, the 50-day moving average is just starting to move up, it is above the 100-day moving average. The 100-day is above the 150, and the 150 is above the 200.
So this is really like a 4-for-4. This is above that, this is above that, this is above that, this is above that, this above that, I guess that’s a 5-for-5. So this stock is working really well, I like that. It is a little bit high right now for an entry because of this. It is kind of bumping up against this line here, this top here. And if you think that the stock is just going to run right through and never pull back, then you have got to get on this right now.
My sense is, just because of the way stocks trade, especially in this kind of high-pressure environment, meaning there is a lot of pressure on stocks, because of that, I think you will get some kind of a pullback and a better entry.
I have heard two people, who I trust as money managers, one large guy who runs a boatload of money and is very well connected with other wealth managers. And then somebody else who is an awesome amazing trader who also runs a lot of personal money. The latter guy likes Merck ( NYSE: MRK ) a lot. He thinks that it is kind of one of those “defensive” names that have had a heck of a move, it’s not a high-momentum trade, but he thinks it is ultimately going higher.
The other source of information that I have is telling me this, fund managers, wealth managers, large institutional trading desks, they’re really starting to rotate out of some of the things that have worked so well, and they are going more towards the defensive names because of the upcoming recession.
Anybody who tells you there is not going to be a recession is either a politician on the Federal Reserve or just kind of doesn’t really know much. The yield curve and a boatload of other things are really indicating a really weak economy for a while. And in a case like that, some of these healthcare stocks tend to do pretty well.
What I am suggesting to you in this free video is, to keep your eye on this. And if it pulls back to here, hopefully, maybe even it pulls back to the 50-day moving average, and then gives you a little indication that the stock is going to rebound, that would be a better entry for you. But keep an eye on this. Again, I wouldn’t be a buyer of it right now, but keep an eye on this stock because it could very well work in the future.
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