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Healthcare As A Leadership Group

June 27, 2022

Last week the US Healthcare Sector hit new multi-year highs relative to the S&P500.

The Relative Strength has already been there under the surface.

And when you look at Healthcare on an absolute basis you can see the sideways digestion of prior gains during a period where most stocks and indexes were falling:

I think this is an area that deserves our attention.

Large-cap Healthcare has been a leader.

Look at Ely Lilly making new all-time highs, and quickly approaching our upside targets:

And look at this massive base in Bristol Myers as it breaks out to new all-time highs:

I don't think these are moves that should be taken lightly.

And one more thing about Healthcare is that the leadership has been in the large-caps.

When you look at Biotechs, which include a ton of the smaller-cap names, they've been leaders to the DOWNSIDE.

We've grouped Biotech with the rest of this cycles "culprits" including Chinese Internet, Arkk Funds and the IPO Index, among other Growth areas.

Of those groups, Biotech has really shined lately. Maybe not to the extent of Chinese Internet the past few months, but Biotech has still emerged as a leader among the worst groups in the market.

I think those areas need to continue to improve for stocks as a group to get out of this mess.

So if Large-cap Healthcare is already working and now it starts to work as you go down the cap-scale, I think that creates real leadership.

Healthcare is a key focus of ours this summer.

Go through a list of healthcare charts. I think you'll find some nice setups.

Let me know what you think!

JC

 

 

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