I have professed my love for healthcare stocks in the past, and I still believe they’re good things to have on the watch list at least.  Almost Family provides home health care services and AFAM, the stock, has been sitting atop the IBD list for a little bit now.  Throughout the recent rough period, the stock has somehow managed to stay afloat, but I actually don’t think it can keep this up.  I would normally be very bullish on the long term prospects of a stock like this, but I’m not looking too hard at the long term right now.  As with all stocks that sit atop the IBD list for an extended period of time, this one will probably crash spectacularly at least once before it moves on to untold riches — that’s what forms double bottoms.  And that crash is exactly what we’re looking for in this market.

Triggers

• Below $33 – short
• Above $50 – shift lower watch point up; consider long if this is after a lengthy consolidation and the market is better by then