Healthcare Stocks Ripping Again

JC Parets
April 6, 2023

It's about time that Healthcare stocks get going again.

Remember, this is the 2nd largest sector weighting in the S&P500 (after Technology).

It's a really important group of stocks, representing over 14% of the index, that had essentially gone nowhere for 2 years.

Until the past few weeks....

How will a breakout in Healthcare impact the S&P500?

Do you think S&Ps roll over and break down if the 2nd largest component is breaking out of a multi-year base to new all-time highs?

When we talk about U.S. Healthcare, how can we not mention this multi-decade base breakout in Merck?

We're seeing a 5.5% weighting in the Healthcare Index already making new all-time highs:

Is the overall index next?

Think about the market implications of such developments.

In the meantime, we put on a Bull Call Spread on Merck yesterday.

That means we're long the $MRK October 115 Calls and short an equal amount of the October 125 Calls.

Check out all the details of our latest trade here.

And I also realize that not all of you trade options (yet), so make sure to check out each of the Healthcare stocks we want to own right here right now.

We discussed them all on this week's Live Conference Call.

There are some European Healthcare names that trade on U.S. exchanges that also look attractive.

Check it all out here and then let me know what you think!

JC

 

 

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