Most strong stocks fall in weak markets

Yesterday I spent a couple of hours searching my medical stocks watch list looking for strong stocks that might rise if the recent bear market bounced continued.

Today, of course, stocks plunged, and the six medical products stocks I had mentioned here fell, but not nearly as much as the market.

All this proves is that even strong stocks have tough times rising in bear markets and on days when the overall market falls some 2%.

Daily charts for the six strong stocks are here.

Even though they retreated today, their technicals are still pretty strong.

What is interesting to me is that the annualized yields on covered call trades for these stocks aren’t very attractive. This means that the market doesn’t see them as being particularly risky at the moment.

I own long term calls, or LEAPS, on STJ.

For educational purposes only. Investigate before you speculate.

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