Adding a "Money Flow Buy"

As the market awaits the cue to  Brexit or Bremain, trading has been choppy to say the least.  However, all we care about are our rules. Yes, we're selfish traders, we only care about OUR rules! - Since the price of the SPY continues to be above an up trending, long term Chaikin moving average, along with positive money flow, we follow our rules for entering new long-term trades.   ( As a side note, we would like to see the closing price of the SPY above the 21 day EMA, which we don't have, but man, it's close today. )    

Given that the broader market meets our rules for entering new trades, I'm looking for new Chaikin buy  signals, and POW!!!    I  got a pretty good one this week.   ( I entered the trade Tuesday, simply because my order didn't fill Monday)    

United Health Care, looks pretty... healthy.  Ha!  

  In all seriousness, $UNH has a Very Bullish PG rating, belongs to a strong industry and  currently has a strong trend.  Also, $UNH  is in a  long term uptrend after breaking out above previous resistance,  price above the long term, a solid sea of green "money flow" , positive relative strength, experts love it... and, wait!  There's more!  It is currently oversold.    Chaikin Analytics gave us a "Money Flow Buy" signal earlier this week.  This stock meets all our rules for entry. 

However, If we want to do a little more diligence before we pull the trigger, let's look at the Health Care sector, which $UNH belongs to.   We track the sector using the ETF,    XLV.     The above chart show's the weekly power gauge rating of the XLV over the previous several weeks.  We track the Power Gaudge ratings of the most liquid ETFs and record them every week.  Personally, I like to see the eb's and flows of the market this way.   You can track Sector Trends with us HERE.   As you can see, the XLV has been a strong sector for several weeks, and it goes back far longer than we see here.   The XLV has also been outperforming the S&P for several months, based on the Power Gauge ratings, which of course is a mostly fundamental indicator.  All of these things are  bullish signs for the sector.   

If you want to dig even deeper on the XLV, you'll see it also has a sea of green "money flow" over the past 12 months, and while the XLV has  traded sideways recently, it does remain above a long-term Chaikin moving average (DEMA) that is ever-so- slightly pointing up. 

I really like the set-up on this trade.  If there is one thing I don't like about thew timing, it's that the name has earnings on July 19th.  We generally don't trade within 30 days of earnings.  As we get closer to an earnings anouncement IV tends to run up, but  implied volatility hasn't really began to do that here.. yet.
I'm satisfied with my homework on this trade, and I decided to pull the trigger.   I entered this trade on Tuesday 6/21  in my paper money account. 

​BOT +41 UNH @138.58

 Happy Trading ,
AA