When a stock has bad headline news and still goes up, that should get your attention.
Today’s trade is a perfect example as it missed its earnings estimates, but didn’t go down.
It also rallied yesterday when the market fell apart late in the day yesterday.
Tap here for the trade set up and more reasons to be on the bull side of the stock.
Chubb (CB) broke out of a 6-month base a few days ago and despite reporting weak top-line earnings the stock has continued higher.
In addition to its emerging trend, the insurance sector is in a strong trend as well. In fact, if you followed my trade idea in ALL a couple weeks ago you’re doing well.
Admittedly the breakout entry around $143 looks better than paying 145.75 or higher, which is what I think the entry should be now.
However, by waiting for the confirmation of new high, your stop of under $142 should be more reliable.
In short, if CB trades over $145.75 it’s a buy with a stop under $142.
Rick Nartarian, Chief Investment Officer
The American Investor Daily