BSX and Medical Devices

Back in October 2015 we had an NFTRH+ highlight on medical (stent) device maker Boston Scientific, a customer of mine in my former life.  From the update, which included daily, weekly and monthly charts to give the full technical view.

“To that point, let’s take a look at Boston Scientific, a medical device maker and one-time customer of mine from the old manufacturing days.  There’s the dreaded Death Cross of the 50 below the 200 day moving average.  What is actually going on is that the 50 is reflecting the downward consolidation since May’s recovery high. The 200 is rising and that means the stock is still in a longer-term uptrend.  In other words, the stock may not end up a good trade for many potential reasons, but what the moving averages are doing won’t be one of them.”

While I traded out and took profits in BSX at least once, as noted in NFTRH my experience with the Medical Device industry has been that it is as close to recession-proof as you can get (and unlike booze and smokes, it doesn’t take away from your health). I bought it back a long while ago, have sat on it like a mother hen and here’s BSX up a cool 8% this morning on earnings, compounding an already strong profit as it rewards my patience, which all too often I do not have an over abundance of when dealing with individual stocks.

bsx

For reference, here is a weekly chart of XLE, IHI and XLV, which we review each week in NFTRH to get a handle on potential out performers.  Note IHI (medical devices ETF) in breakout mode from an Ascending Triangle.

xle

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