Trade Ideas Newsletter 08/04/2016

DVA is at the beginning of a significant breakdown

Based on the previous analysis in DVA, traders should ensure that their portfolio can handle increased risk from an additional trade. Also check to make sure that DVA increases diversification of your current portfolio. Lastly, smart traders check how a new position relates to not just their account, but the current market action as well. For example, take a look at the S&P 500. Is it moving higher or lower? Has it recently moved through a key resistance or support level? Be sure to match up your trading actions on DVA in relation to the overall market movement.

CHART

Right now the custom sentiment levels, measured by Traders For Wealth, indicate an increasingly negative bias toward DVA. In addition, the price action in DVA has been moving down as well. This could be a strong sign of an impending breakdown. Traders should view this as a very bearish trade and make sure it matches up with the overall market, and their current portfolio.

Davita Healthcare Partners Inc. (DVA)

DaVita HealthCare Partners Inc. is a provider of kidney care services. The Company operates Kidney Care division and HealthCare Partners (HCP) division. Its segments include U.S. dialysis and related lab services, HCP and Other-Ancillary services and strategic initiatives. Its Kidney Care division is a provider of dialysis services in the United States, treating patients with chronic kidney failure and end stage renal disease (ESRD). HCP division is a patient and physician-focused integrated health care delivery and management company. Its U.S. dialysis and related lab services segment is a provider of kidney dialysis services for patients suffering from ESRD. It provides dialysis and administrative services in the United States. Its ancillary services and strategic initiatives segment consists primarily of pharmacy services, disease management services, vascular access services, clinical research, physician services, direct primary care and its international dialysis operations.