The 2013 All-America Research Team: Technical Analysis, No. 2: John Mendelson

In his 20th appearance on the roster, John Mendelson repeats at No. 2. The ISI Group analyst has “a formidable data bank that I often rely on,” says one client. “He’s been around the block and through more than a few cycles, and that’s given him both experience and perspective,” the money manager adds. “He can look at the market today and tell you, for example, how that compares with a similar pattern 20 years ago. That’s exceptional.” Notable among Mendelson’s recommendations for the rest of this year and into 2014 is a June note advising clients to favor U.S., Japanese and European major pharmaceuticals. (Mendelson first staked out this relative position in November 2011.) The equities of multinational pharma companies “all look attractive on a technical basis,” he insists. Furthermore, based on its 200-day moving average, the group is due for a “near-term correction” of some 10 percent, he forecasts, which should provide a good entry point for investors. The researcher’s several-year price target for the NYSE Arca Equal-Weighted Pharmaceutical Index remains at 800; the index closed at 668.48 on August 30, little changed since June. “This has been a favorite group, and it remains a favorite group on an intermediate to longer-term basis,” Mendelson reports. — Paul Sweeney