Markets are trading mostly sideways today. One interesting note is that my health care stocks both have finally made a move. Johnson and Johnson (JNJ) and Amgen(AMGN) have both traded upward today. Now I'm trying to figure out if it is just a bounce because they were oversold, or if they have bottomed. I think in the case of Johnson, it basically has bottomed. I was looked for a buy point a little under 60, and it has since moved up to near 61. It is looking like it will begin its climb from here.
Amgen, on the other hand, I'm still a little cautious on. I think that todays advance could be a quick bounce and it could still head lower. There hasn't been much positive news out of the Amgen camp lately. I'm sure management is trying to figure out how increase the stock price. They could institute a dividend, or buy back more of its stock. The earnings estimates have steadily dropped, and if they surprise to the upside when they announce, the stock could advance 10%. In the mean time, I'm paying close attention to its trading patterns relative to the broad market, as well as trading volume. I'll continue to update as things progress.