Below is a brief note from CEO Keith McCullough on why we're adding AMN Healthcare Services (AMN) to the short side of Investing Ideas today:
Fun times at the all-time highs. I guess everyone's a buyer now that everything in the rear-view mirror is crystal clear. Hash-tag US Growth Accelerating, baby!
Our risk management process doesn't "feel" anything about that. When stocks are #overbought, we signal overbought. When they are #oversold, we signal oversold.
AMN Healthcare Services (AMN) is signaling immediate-term #overbought within our Healthcare Team's Bearish @Hedgeye TREND view. Here's an excerpt of an Institutional Research note they sent to our subscribers on nurses vs. macro:
"The Current Population Survey (CPS) contains data on employment status by occupation, including registered nurses, and the most recent data available from October 2017 shows a -3.6% decline year over year in the number of "Employed - At Work" registered nurses compared to 4Q16 average. The implication for a temporary nurse staffing company such as AMN is negative. Declining employment of registered nurses in the CPS data agrees with the decelerating trend in Health Care Employment broadly and Hospital Employment specifically."
Sell on green,