“UHS emerges as a potential winner in challenging market.”

By Nathan Bear,Trade of the Day, 2024-08-08

Long-side traders, buckle up. We’re in for a bumpy ride.

Every rally seems to hit a wall lately. The market’s giving us a clear message: adapt or struggle.

My response?

Quick hits over long hauls. I’m snatching profits fast and staying light on my feet.

In this market, hesitation is costly.

Blink, and opportunities vanish.

It’s all about speed, precision, and the guts to act swiftly.

More importantly, stock selection is critical.

Tech stocks have been hard to trade. That’s why I’m looking for more opportunities outside of tech, like my latest watchlist pick, United Health Services, Inc. (UHS)

It’s not a name I typically trade, but that’s the beauty of the S.A.M. Scanner.

It finds plays that fit my criteria.

And there’s a lot of things to like about UHS despite a challenging market in front of us.

Universal Health Services (UHS) is a major healthcare provider operating acute care hospitals, behavioral health facilities, and ambulatory care centers across the United States.

The company offers a wide range of services from emergency care and surgery to psychiatric treatment and substance abuse programs.

More importantly, UHS emerged as an earnings winner this quarter, significantly beating analyst expectations. With a Non-GAAP EPS of $4.31, surpassing estimates by $0.99, and revenue of $3.91 billion, exceeding projections by $50 million, UHS demonstrated strong performance across its diverse healthcare portfolio.

And that’s something I want to focus on right now.

Stocks that have performed well during this earnings cycle.

Ideally, I’m looking for stocks that pop after earnings, and hold their move.

Did you see SMCI the other day, it initially popped higher after earnings, and then it gave it all back and then some.

What I’m looking for is some form of consolidation after the big earnings run nup.

Again, I’m not sifting through all the earnings winners to do this, I’m using the S.A.M. Scanner to find them.

So what did S.A.M. like about UHS in this messy market?

It is trading above its 8,21, and 34-day exponential moving averages, demonstrating a strong bullish trend.

In terms of timing, yesterday I saw that it had been forming a squeeze on the 78-minute chart.

Now, 78 minutes represents one-fifth of a standard trading day (390 minutes). This division can potentially reveal intraday patterns not visible on more common timeframes.

It also has a 195-minute squeeze forming, giving it two A+ setups.

That said, I’ll be looking at UHS closely today and the rest of this week for a potential long play.

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