NEW YORK (TheStreet) -- Centene (CNC) , Humana (HUM) , Dow component UnitedHealth (UNH) and WellPoint (WLP) set all-time highs on Friday, as these health maintenance companies are well-positioned to take advantage of new business though Healthcare.gov. Investors should consider defensive investment strategies to lock-in longer-term gains. The four stocks closed in the red Monday.
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The three-month open enrollment period to sell 2015 Obamacare health plans begins on Nov. 15, and technology issues that came to light a year ago do not seem to be issues this year.
More than 7 million subscribers signed up through Healthcare.gov for their 2014 plans a year ago and the Congressional Budget Office expects 13 million signups to buy their healthcare plans through an exchange via Healthcare.gov in 2015 and 24 million signups in 2016. The major health care insurance companies are prepared to benefit and have been market leaders on strong technical momentum in anticipation of this significant surge in demand for health care by Americans.
Tuesday's mid-term elections is a buy opportunity even if the Republicans take over the Senate. The call to appeal the Affordable Care Act has quieted significantly and it now seems as if Obamacare is here to stay.
Here's how to trade these health care stocks, making sure that long-term gains are locked in, given downside volatility.