While everyone watches the gap-down recovery, Blake Young just flagged the cleanest healthcare breakout of the month.
Amgen broke out today with a $5.74 move. Blake sees another $9 coming in days.
The setup pays 50% return on risk if you structure it right.
Healthcare ETF XLV gave a monkey bar breakout off the 142 lows. Accumulation crossed bullish. Volume confirmed it.
Individual names look even better than the sector.
Here is what Blake walked through in tonight’s video:
- Amgen broke out above previous highs with a target of 346, a $9 move from 337. The gap signal aligns with the top of the monkey bar pattern.
- The trade structure is a 325/337.50 in-the-money call spread for around $8 to $8.50 on a $12.50 wide spread. Maximum return runs north of 50% on risk in about a month.
- Danaher gave a fresh buy signal with a fair price target of 178.08 and a gap fill target at 184. That is a 3% to 7% move depending on how far it runs.
- Homebuilders hit the bearish target at 9535 and bounced on a 10-year yield pullback. Blake wants to fade XHB back at 103.94 with a Toll Brothers 140/145 put credit spread paying $1.40+.
The rotation is the real story. Money is chasing tech on one hand and stuffing cash into healthcare, utilities, and consumer staples on the other.
That is not conviction. That is defensive positioning.
Blake thinks oil pushes higher, yields push higher, and homebuilders roll over. Healthcare catches the safety bid the whole way down.
