Weekly Short Sale Stock Pick

My weekly stock pick this week is a short-sale, and it comes after technically scanning the charts looking for a low risk high reward trade setup. That’s been hard to find lately in these volatile market conditions. I’m not ready to invest long-term in this market, so trading is the name of my game. Going short has been rewarding, and going long has been nothing but being stopped out. This week I’m putting a short sell on a company in the medical sector. The medical sector has enjoyed the highest profit margins of any other sector or industry in the market for a long time. I’ve thought for a long time these rich margins will get squeezed as the economic crisis, universal health care issues, and President elect Obama will be dealing with this very tough situation. Ripe ingredients for lower medical sector stock prices.

After watching Michael Moores movie called "Sicko", it reminded me of what Bill and Hillary Clinton tried to do before and during their term as President. To provide more affordable health care for the American public, and get rid of the waste, fraud, mis-management, and downright embezzlement that is now built into the USA health care system. Three weeks before Bill Clintons first election, he stood in front of the board of directors at Merck Pharma, and stated that if he was elected he would be going after the HMO’s, health insurance, and drugs companies to bring down the their costs. After Bill said that, Wallstreet promptly sold off the entire medical sector big time no matter what kind of company it was. I see the same thing coming sometime soon for the medical sector, and I’m betting it will take no prisoners.

Short Sale on Hologic. Ticker HOLX

Sell Entry: 14.93 to 14.00

Stop-Loss: 16.50

Take Profit Areas:

12.14 to 11.21

10.09 to 9.86

7.97 to 7.79

Analysis on this Hologic Sell Position

None fundamentally. All technically. If you haven't noticed the market lately, its tanking big time. Don't stand in front of this train if you want to invest and trade another day. Short selling is the place to be right now.

Hologic Company Profile from their website.

Hologic, Inc. (NASDAQ: HOLX) is a leading developer, manufacturer and supplier of premium diagnostics, medical imaging systems, and surgical products dedicated to serving the healthcare needs of women throughout the world. Historically, Hologic developed, manufactured, and marketed products focused on mammography, breast care, and osteoporosis assessment. In 2007, we expanded our focus and now provide a comprehensive suite of technologies with products for mammography and breast biopsy, radiation treatment for early-stage breast cancer, cervical cancer screening, treatment for menorrhagia, osteoporosis assessment, preterm birth risk assessment, mini C-arms for extremity imaging, and molecular diagnostic products including reagents for a variety of DNA and RNA analysis applications. We are proud of this achievement, and conscious of the responsibility that our leadership position brings with it. We believe that the health issues facing women today deserve and demand the singular dedication of a passionate company. Our core business units are focused on breast health, diagnostics, GYN surgical, and skeletal health.

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Click the Hologic Stock Chart for a larger view.