This ostensibly “defensive” stock has been in the vanguard of institutional lunatic-fringe vehicles, but it’s been a while since we looked in on it. An 88.06 target not far above could offer an excellent opportunity to pick the top by getting short. Camouflage is the method of choice, but if you want to try it the easy way, you can short 88.04, stop 88.17. ________ UPDATE (May 16, 3:39 a.m. EDT): Wednesday’s energetic leap brought the stock to within 18 cents of the rally target noted above. Since JNJ looks to be in a shallow consolidation, I’ll suggest extra caution if attempting to get short at the 88.06 target. Be alert to the possibility that Thursday’s opening occurs above the target. _______ UPDATE (May 17, 4 p.m.): The stock streaked to the target in the closing minutes of Friday’s session, peaking 14 cents above it at 88.20 before settling back slightly. I’ll assume nothing done on the trade, since shorting at the final bell on a Friday is not exactly playing it extra-cautious as advised. If any subscribers report having gotten short, however, please let me know in the chat room and I’ll establish a tracking position. The most risk-averse way to have attempted it would probably have been to have bought puts on the close. _______ UPDATE (May 18, 1:20 p.m.): There was not much interest in this trade in the chat room, presumably because it triggered in the final moments of Friday’s session. But if you took it, I’d suggest risking no more than 0.20 per share, implying a stop-loss at 88.26._______ UPDATE (May 22, 9:53 a.m. EDT): Has Johnson & Johnson come up with a cure for cancer? The way Wall Street’s best and brightest have been chasing this stock, that’s what one might infer. Please note that the stock at this very moment is speculatively shortable, since it’s trading within pennies of a clear Hidden Pivot target at 89.46 (60-min, A=80.31 on 4/8; B=85.89 on 4/29; and C=83.88 on 5/1).
