EPISODE 4/11: US HEALTH CARE(XLV) SECTOR Technical Analysis- 16th of July 2019.
There is really not much to say. Profits in the health care sector are very reliable on the cycle. Since Trump took office, the cycle extended, and hence it formed a channel as noted in the analysis.
One major risk that has always affected the health care sector is regulation and...
I heard some interesting commentary this week from the pros about watching for signs in the cyclical:defensive sector ratio.
I put together this chart using (XLK+XLI+XLB)/(XLP+XLU+XLV).
It is a composite of tech, industrials and materials indexes as a ratio to staples, utils and health sector indexes.
The chart ratio is about 1:1 right now.
In a late stage...
When SPDR Healthcare's relative strength (vs. S&P 500) and its 50MA are both above its 200MA, it signals S&P 500 is about to hit the top and drop.
When SPDR Healthcare's relative strength (vs. S&P 500) drops below its 50MA, it signals S&P 500 has bottomed out and will trend higher.
XLV pulled back sharply largely to do with a knee-jerk reaction to the Dems ‘Medicare for all’ (ie Europe-style government health service). Contrast this to the general Dec 2018 market collapse, and we see
- a 7.2% W1 rise
- a 50% W2 pullback
- a W3 repeating the move, and running to the 1.618 fib
The price carried on after December, but just anticipating a...