Health Care ETF Sneaks to New Highs
The SPDR Health Care ETF broke above its pre-Covid highs on July 17. Now it’s pulled back and is bouncing at those old levels. Is a stealth breakout taking place?
XLV has also formed a bullish ascending triangle, which it’s broken to the upside.
Health care is interesting because it lost more than 1 million workers amid the coronavirus lockdowns (according to Labor Department data). It’s not as bad as hotels or airlines, but it was clearly disrupted.
However unlike hotels and airlines, health care is a non-cyclical part of the economy that can still work during a recession. And recent numbers show it might be rebounding quickly. For example hospital operator
HCA
is up 35 percent in the last month, partially because admittances are rebounding. Equipment providers like
ISRG
and NASDAQ:ABMD have also jumped as procedures resume.
Overall health-care isn’t the most exciting sector. But it is a big chunk of the economy. Like housing, it’s likely to recover much more quickly from the pandemic than other sectors. That may keep the buyers engaged, especially if XLV holds the recent low of $104.43.
XLV has also formed a bullish ascending triangle, which it’s broken to the upside.
Health care is interesting because it lost more than 1 million workers amid the coronavirus lockdowns (according to Labor Department data). It’s not as bad as hotels or airlines, but it was clearly disrupted.
However unlike hotels and airlines, health care is a non-cyclical part of the economy that can still work during a recession. And recent numbers show it might be rebounding quickly. For example hospital operator
HCA
is up 35 percent in the last month, partially because admittances are rebounding. Equipment providers like
ISRG
and NASDAQ:ABMD have also jumped as procedures resume. Overall health-care isn’t the most exciting sector. But it is a big chunk of the economy. Like housing, it’s likely to recover much more quickly from the pandemic than other sectors. That may keep the buyers engaged, especially if XLV holds the recent low of $104.43.
