How To Trade These 7 Healthcare Stocks and ETF Says 2ndSkiesForex's Chris Capre

The Benzinga Global Small Cap Conference on May 13 featured presentations from publicly-traded companies and educational segments for investors.

Among the featured segments was one from Chris Capre on how to trade healthcare trends. Capre is the CEO and head trader of 2ndSkiesForex.

About Healthcare Trends: Healthcare is something everyone needs, which makes stocks in the sector a possible opportunity for investors. With the industry changing quickly, Capre shared his thoughts and offered some stock picks.

Capre told viewers that flow is king: It's important to look at flows for stock and at option flow, which suggests whether a stock might go up or down.

He noted that in the healthcare sector, investors should look at healthcare providers and other sectors in the industry.

ETF Pick: Capre highlighted Health Care Select Sector SPDR Fund XLV. The ETF has $25 billion in assets, holds 63 companies and offers a 1.4% dividend yield.

The ETF is showing strong bids in the $112 area and Capre likes it in the $118 to $120 range, which looks like the range a lot of options dealers are hedging their position at.

Capre said the ETF is up 8.7% year-to-date and could continue to rise, finishing the year over the $125 mark and possibly hitting closer to $150.

Related Link: 12 Health Care Stocks Moving In Thursday’s After-Market Session

Stock Picks: The healthcare stock picks from Capre in the healthcare sector were Anthem Inc ANTM, Cigna Corp CI, CVS Health Corp CVS, Henry Schein, Inc. HSIC, IQVIA Holdings Inc IQV, Medtronic PLC MDT and UnitedHealth Group Inc UNH.

Capre pointed to a large number of Anthem shares being bought in dark pool trading, a strategy sometimes used by institutions wanting to accumulate large positions quietly. There is over one full day of volume being bought in the dark pool.

Shares started the year at $322 and are now up to $396. Capre thinks shares could pull back to $380 and reach $420 by the end of the year.

IQVIA has been a strong performer recently and attracted Capre’s attention in the sector.

“Been gaining for seven out of the last nine weeks,” Capre said. But, he sees a pullback coming with shares overextended.

Medtronic has “very good volume, very good liquidity, very good options volume.” The shares look to have a clear level at $120 from a technical analysis and options perspective. Shares of Medtronic also offer a “decent dividend.”

(Photo by National Cancer Institute on Unsplash)