A friend of mine down in Miami sent me a video this morning of Technician Carter Worth going over some of these defensive stocks that led the way in the first quarter. The big questions is whether or not they will continue to lead going forward. I think it’s been pretty well documented here on the blog that the leaders this year have been Healthcare and Staples, two very defensive areas that tend to lead towards the end of a market advance. So now what?
Here’s a short clip of Oppenheimer’s Chief Market Technician, Carter Worth, breaking down this space. I think he makes some really good points, especially when it comes to risk. You often hear people saying things like, “I’m just going to ride the trend until it breaks”. Which is fine. But when you have so much money under management that you yourself are several days (or even weeks) of volume, you can’t just “stop out”. You need to harvest gains if and when they come. It’s just prudent risk management right?
Click on the clip to watch:
Tags: $GILD $JNJ $TRV $KR