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Aetna, Humana, Other HMOs Slip on Web Site Glitches

Health Net (HNT - Get Report) ($31.03 vs. $32.87 on Oct. 2) -- Between July 8 and Oct. 2, this stock gained just 2.5%, setting a multiyear high at $33.90 on Sept. 16. Between Oct. 2 and Oct. 22, this buy-rated managed-care provider slipped 5.6% vs. the S&P gain of 3.6%. The 200-day SMA is $29.90 with an annual pivot at $32.54 and monthly and annual risky levels at $33.18 and $35.35.

Humana (HUM - Get Report) ($92.82 vs. $94.87 on Oct. 2) -- Between July 8 and Oct. 2, this stock gained 12.6%, setting a multiyear high at $99.85 on Sept. 16. Between Oct. 2 and Oct. 22, this buy-rated provider of health care services networks slipped 2.2% vs. the S&P gain of 3.6%. My semiannual value level is $90.53, with an annual pivot at $91.58 and a weekly risky level at $94.56.

My son is an insurance agent for Bankers Life and Casualty, which is a business segment of multi-line insurance company CNO Financial Group (CNO) ($15.04). Other segments are Colonial Penn and Conseco Insurance Group. Bankers Life has an affiliation with Humana, and so agents can also offer health insurance plans. CNO Financial has a hold rating and set a multiyear high at $15.25 on Oct. 22. My semiannual value level is $14.08 with monthly and quarterly risky levels at $15.44 and $15.50.

UnitedHealth Group (UNH - Get Report) ($68.86 vs. $72.57 on Oct. 2) -- Between July 8 and Oct. 2, this stock gained 7.4%, setting a multiyear high at $75.88 on Sept. 16. Between Oct. 2 and Oct. 22, this buy-rated health care provider and Dow component slipped 5.1% vs. the S&P gain of 3.6%. My semiannual value level is $62.39 with weekly and semiannual risky levels at $71.38 and $73.01. UnitedHealth reported quarterly results on Oct. 17 with an EPS miss of 1 cent, earning $1.53 a share.

WellCare Health Plans (WCG - Get Report) ($70.00 vs. $72.71 on Oct. 2) -- Between July 8 and Oct. 2, this stock gained 25.7%, setting a multiyear high at $73.41 on Oct. 4. Between Oct. 2 and Oct. 22, this hold-rated provider of managed care services targeted to government-sponsored health care programs slipped by 3.7% vs. the S&P 500 gain of 3.6%. The 50-day SMA is $68.38 with an annual pivot at $69.44 with a semiannual risky level at $72.05.

WellPoint (WLP) ($88.43 vs. $86.60 on Oct. 2) -- Between July 8 and Oct. 2, this stock gained 4.2%, setting a multiyear high at $90 on July 24, which was nearly retested on Sept. 16 and Oct. 16. Between Oct. 2 and Oct. 22, this buy-rated health benefits company with affiliations with some Blue Cross and Blue Shield associations gained 2.1%. Weekly and semiannual value levels are $85.96 and $83.77 with a monthly risky level at $90.30. WellPoint reported quarterly results Wednesday and beat EPS estimates by 27 cents, earning $2.10 a share. The company also beat on the revenue line.



At the time of publication, the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier is the chief market strategist at AlphaPlus Analytics in addition to ValuEngine.com. He has been a professional in the U.S. Capital Markets since 1972, transferring his engineering skills to the trading and investment world.

Suttmeier has an engineering degree from Georgia Tech and a Master of Science degree from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. He became the first long bond trader for Bache in 1978, and formed the Government Bond Department at LF Rothschild in 1981, helping establish that firm as a primary dealer in 1986. This experience gives him the insights to be an expert on monetary policy, which he features in his newsletters, and market commentary.

Suttmeier's industry licenses include, Series 7 and Registered Principal (Series 24). He has been the Chief Market Strategist for ValuEngine.com since 2008 and often appears on financial TV.

Click here for details on Suttmeier's "Buy and Trade" investment strategy.

Richard Suttmeier can be reached at RSuttmeier@Gmail.com
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SYM TRADE IT LAST %CHG
AET $107.25 -0.44%
CNC $69.81 2.44%
HNT $57.42 1.75%
HUM $178.70 0.69%
UNH $118.58 -0.11%

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