“Healthy” Hazard:
The diverse healthcare space on a YTD basis is trading right in the middle of the pack up 10%, fifth best among the 11 major S&P sectors. A solid, yet pedestrian move as some rotation continues into defensive areas into the teeth of the summer doldrums, which of course as we know tend to be volatile. Below is the longer-term WEEKLY look at the XLV and it has something for both bull and bears although they must favor the former as a nice uptrend is in place. The naysayers will claim that it is not distancing itself from the breakout area above the bull flag, as we know the best breakouts tend to work right away and act well POST breakout. The XBI MONTHLY chart continues to be repelled at the very round par number, but give it credit for breaking ABOVE a bearish head and shoulders formation, and we know from FALSE moves can come fast ones in the opposite direction. Notice too it has formed a bull flag with the trigger right at pesky 50 MONTH SMA resistance. This overall sector should perform well as it has something for most investors. Conservative ones will clamor the dividend and maturity, and those looking for some growth could add exposure to the biotechs.