Good afternoon, Daily Direction readers!
I continue to work on finding the right markets to trade that are moving in the right direction.
This applies to contracts for stock index futures, alternative asset futures, currency futures as well as individual stocks.
And once I have found the right direction for a futures contract or an individual stock, I then turn to identifying the right entry and exit levels for the right trades to make.
In two of our stock trading advisory services, we have been on a roll over the past days and weeks in a leading US-based insurance company.
The Right Place at the Right Time
Cigna Corporation (CI) focuses on health and dental insurance as well as life and accident insurance. It has been performing very well as a company as it and its peer group of leading insurers are in the right market at the right time.
Insurers are gaining in the market from two major developments, particularly in the US market. First, with the economy still expanding, sales of insurance products and services are expanding, which in turn is driving revenue gains.
And second, with bond yields continuing to normalize towards higher rates, insurance companies are able to improve the returns on their investment portfolios that are traditionally focused in the bond markets, including that of US Treasury bonds.
Revenue for Cigna increased by 9.5% for the most recent quarter. And with its controlled loss and benefits rates, it has delivered a healthy return on its shareholders’ equity of 11%.
The stock is performing with a gain so far this year even with the downward overall performance of the general stock market.
But it is also a bargain as the stock is valued at a 50% discount to the value of its trailing sales on a price to sales ratio basis. It is also priced at a mere 1.6 times its intrinsic value (book).
The Phantom of Profits
Now, the stock is up nicely for our Money Magnet Express service with a gain since we entered the trade of over 12%. And this stock is also now a trade in my Burst Alerts Pro service for more gains in the works.
But what I want to share with you is my use of Phantom Prints in the earlier analysis and price points for the trade set up from the prior weeks.
Phantom Prints are pricing points that provide trading guidance that are based on work done over 40 years ago by a collection of technical analysts that look at price levels that tend to hit over and over again with some regularity.
This works to provide some further confirmation of my own proprietary technical analysis and research as to identifying entry and exit price levels that for Cigna can be seen in the purple lines in the graph above.
Keep On Trading,
Stay tuned for the next edition of Josh’s Daily Direction.
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