Public trading strategy
Defensive growth shines as rate fears ease — ride Eli Lilly's GLP-1 dominance
Thesis
Eli Lilly has a fundamental catalyst with Medicare inclusion for GLP-1 drugs, effectively guaranteeing a massive new revenue stream. The stock is hitting highs just as the weak jobs report takes the threat of rate hikes off the table. High-growth, defensive stocks like pharmaceutical companies thrive when rates are stable because their future earnings become more valuable. This creates a perfect environment to buy the momentum in LLY.
Strategy approach
Build a breakout strategy that enters long LLY on D1 when the stock closes within 1% of its 20-day high and the broader market ETF (SPY) is also closing green for the day. Exit if LLY drops 5% from its entry point or after a 21-day holding period.
Markets and timeframes
LLYD1