Buying More Seattle Genetics

After you receive this Alert, we will be buying 50 shares of Seattle Genetics (SGEN) at roughly $156.83. Following the trade, SGEN will represent 4.28% of the portfolio.

Markets are higher Tuesday, driven by optimism around new vaccine candidates and the expanded reopening of state economies. As we have seen previously in rallies like today's, it is those most beaten-up, economically sensitive stocks that greatly benefit from the economic reopening and loosening restrictions doing best -- further demonstrating the need of maintaining a barbell approach to the market that we have written about repeatedly and most recently here.

This may be a day for the cyclicals and the consumer discretionary names that were limited during the shutdown, but that does not mean we should lose sight of those names that are indifferent to the shape of the economic recovery.

We expected SGEN would outperform in this morning's rally in response to Goldman Sachs adding it to its "Conviction Buy List" and applying a huge $246 price 12-month price target on a belief that "SGEN is poised for both near- and long-term growth on the back of three approved drugs with multiple label expansion...and a robust R&D pipeline built on a proven antibody-drug conjugate platform," however, the stock has come back down to about $156 after an initial pop.

We'll use this relative weakness to scoop up more shares of this biotech.

Action Alerts PLUS, which Cramer manages as a charitable trust, is long SGEN.