Yabba Dabba Doo! Is Humana the Next Big Thing in Health-Care, or Just Another Dino-Sized Gamble?

UnitedHealth's Blues Got Me Thinking!

Yabba Dabba Doo! Fred Flinstone here your favorite Stone Age stock analyst! Heard a lotta grumbling 'bout UnitedHealth dragging down the whole health care gang but now there's chatter 'bout a turnaround. Seems like folks are feeling good about Health Care Select Sector SPDR Fund (XLV) Humana (HUM) Eli Lilly (LLY) and a whole bunch more. Now I coulda jumped on the UnitedHealth bandwagon but it's got more drama than Wilma when I forget our anniversary! So I'm setting my sights on Humana. Cleaner setup less trouble – just how I like my bronto burgers!

Technical Schmecnical: Getting Down to the Nitty Gritty!

This fella Nishant Pant uses these whatchamacallits... technical indicators to figure out where a stock is headed. First up MACD (5,13,5). Says the standard MACD is a bit slow like Barney trying to catch the bus. So he uses a 'faster' one to get early signals. A bullish MACD crossover means it might be time to buy! But he warns a faster MACD can be noisy like Pebbles and Bamm Bamm playing with my bowling ball. So if the MACD crosses back down time to scram or in caveman terms Yabba Dabba DON'T!

RSI and DMI: More Letters Than a Dino's Alphabet Soup!

Then there's RSI – bounced off oversold territory and climbing! Good sign! And DMI? DI DI+ ADX...sounds like a dino's license plate! When DI is above DI+ downtrend. But when they start shifting? Trend reversal baby! Like Wilma changing her mind about that newfangled washing machine. All these signs seem to be telling us that a change might be underway!

Balancing Act: Not Just for Dino Circus Performers!

With the market bouncing around like a baby brontosaurus it's a good time to play it safe like putting Dino in a safety harness. That's why this fella is talking about health care. It's called being 'defensive.' Smart way to keep your clamshells safe he says. Like when I hide my bowling money from Wilma!

The Big Bet: Bull Call Spread...Sounds Like a Rodeo Ride!

Now here's the kicker. He's looking to make some clamshells off Humana with a 'bull call spread.' Sounds like something you'd order at the drive in! Humana's near $247 so he's buying a $245 call (in the money) and selling a $250 call (out of the money). If Humana hits $250 by June 13th BAM! Full 100% return. Controlled risk he says. Like me trying to control Dino when he sees a mailman!

The Bottom Line: Bedrock Gamble or a Stone Cold Winner?

So there you have it! A bunch of charts letters and fancy terms. Whether Humana's a winner or a dud only time will tell. But if you wanna learn more check out Nishant Pant's book Mean Reversion Trading . Or his website. But remember what Fred Flinstone always says: 'Think!' Before you go betting your clamshells on anything! Yabba Dabba Doo...or Don't! This is all just for fun don't go blaming Fred if you lose your dino dollars!