Aetna Inc. (AET-N)

CVS is going to merge with this. As a general comment on this market, he likes the insurance category. With higher interest rates, insurance companies will benefit much larger than banks. Companies with exposure to life insurance and longtail risks will actually have a much higher exposure, relative to property and casualty. If you can buy at a discount to the acquisition price, that is great, but as a long-term hold, start thinking about getting some exposure to insurance markets.

(A Top Pick Jan 8/16. Up 3.23%.) Seasonal strength is from the start of November through to the beginning of April. The average return over that period is 22.3%. There is not much reason to be in this right now.

(His Top Pick stocks are still holding up as of present, but the big warning is the systemic risk that is involved with the market.) A healthcare provider and tends to gain from about November all the way through to April with an average gain of about 22.3%, and has been positive in 22 of the past 25 years. It has consolidated right at the long-term trend line. The long-term trend line has support at $106, and as long as it stays there, you can have a very profitable trade between now and April.

This is an area in the healthcare space which is showing pretty good valuations across the board. The whole group is at pretty compelling valuations. A decent stock to own.

Healthcare stocks are very strong this time of year. Upward strength is probably okay right here. You may want a few more higher highs and higher lows here. Compared to others in the sectors, they have broken to all time highs so this one is lagging and for this reason he would prefer one of the others.