Trade Ideas Newsletter 05/04/2016

HCP is poised for a contrarian breakout

Based upon the analysis above in HCP, traders should make sure that their portfolio can handle increased risk from a new trade. Also be sure that HCP adds diversification to your current account. Lastly, good traders note how a new addition relates to not just their portfolio but the rest of the market action as well. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Be sure to coincide your trading actions on HCP in relation to the overall market as well.

CHART

Currently the proprietary sentiment levels, analysed by Traders For Wealth, have shown an increasingly negative bias toward HCP. However, the price action in HCP has been moving up in value. This could be a contrarian sign to traders for a potential reversal. Traders should view this as a bullish contrarian trade and make sure it aligns with the market and their portfolio.

HCP Inc (HCP)

HCP, Inc. (HCP) is a real estate investment trust (REIT). The Company invests in real estate serving the healthcare industry in the United States. Its portfolio consists of investments in various healthcare segments: senior housing, post-acute/skilled nursing, life science, medical office and hospital. Its portfolio includes owned portfolio, unconsolidated joint ventures, and developments and redevelopments. Its owned portfolio includes around 1,040 properties under lease and 68 operating properties. It has interests in unconsolidated joint ventures representing around 88 properties in its senior housing, life science and medical office segments. It has assets under development, redevelopment and land held for future development in life science and medical office segments. The properties owned by it in medical office and senior housing segments, which are under development or redevelopment include Pacific Corporate Park, Memorial Hermann, Sky Ridge, Bayfront, Folsom and Deer Park.