There a few interesting names on today's volume off the high list. For instance, Express Scripts (ticker ESRX) fell significantly on a warning that 2013 earnings and growth will come under pressure. ESRX's management cited businesses reluctance to hire due to the new healthcare law. As regular readers know, I have been highlighting the risk of employment losses resulting from the healthcare law in prior posts. I also note the company recently purchased Medco to become the largest pharmacy management. I have always been concerned about large acquisitions, which now is only validated in my opinion considering the expected slow down in the business. With the worsening fundamental backdrop and the technical setup, I suggest shorting ESRX and think the stock could get back into the mid-to-low $40's. In addition, I will take off the short position in the S&P Homebuilders Spider (ticker XHB) for a small loss in the short trading portfolio.
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