Codx Stock – Traders see one company as best catch-up play to rally
The Dow looks a little different Monday.
Gina Sanchez, CEO of Chantico Global, said which stocks outperform next depends on the strength of the recovery.
“I’m focusing on a weak recovery and I think in a weak recovery play, you’re looking at something like an American Express or a Walgreens, JPMorgan, things with good fundamentals but should continue to just put one foot in front of the other,” Sanchez told CNBC’s “Trading Nation” on Friday.
Craig Johnson, chief market technician at Piper Sandler, is more constructive on the market and sees further upside. However, he does agree with Sanchez on one of the best catch-up plays.
“We’re neutral on financials, but I would play JPMorgan in here. The stock is starting to make a nice series of higher highs and higher lows, a move above $105 sets the stock back up to go to about $110. So that’s the name we’ll be playing at this point in time,” Johnson said during the same “Trading Nation” segment.
JPMorgan was down 2% to $100.69 on Monday afternoon. The shares have fallen nearly 28% this year.
For Johnson’s pick to work out, he says he needs to see 10-year bond yields begin to climb and the spread between the 2-year and 10-year to widen. The 10-year was slightly lower Monday, trading at 0.69%.