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Healthcare Sector Review: 10/27/21
Down To The "Big Three": I am showing my age here as I am referring to the big three biotech plays, which used to be the big four before CELG was acquired by Bristol Myers nearly three years ago. What has happened since then was that GILD had been left out of the trio as it was in the shadows of AMGN and BIIB. That is no longer the case, perhaps as GILD is now in the vaccine arena. But AMGN for one has undergone a strong decline and now trades 25% off most recent 52 week highs, and it did record a bounce off the very round 200 number on 10/12 but it could prove to be temporary. It has slipped 10 of the last 14 weeks. BIIB which has witnessed some very volatile trade in regards to its Alzheimers drug is now 42% off its annual peak. Below is the chart of GILD which sits currently "just" 8% off 52-week highs made in August. The stock is the only one of the three above its 200 day SMA and pays a solid dividend yield of 4.2% (BIIB pays none and AMGN pays a yield of 3.4%). Stay constructive on GILD as long as it remains above its 200 day. It REPORTS earnings Thursday after the CLOSE and 3 of the last 4 have been lower, although in a tepid manner, by 2.2, .6, and .3% on 7/30, 4/30, and 10/29/20.
Consumer Sector Review: 10/26/21
"Clearing Up" Chart Complexion: Pun intended. The chart below of EL is taking on a better look to it. Compared to peers like ULTA which traded right up to the top of the range of a bearish counterattack candle from 8/26 on 10/18. It has since backed off from the very round 400 number and sank more than 8% last week in the largest WEEKLY volume in one year. Others in the arena such as SBH are now 36% off highs made in May. All of the previous 4 weeks CLOSED in the lower half of the WEEKLY range. Give credit to the nice look of ELF which is trading just off all-time highs and sporting a WEEKLY bullish ascending triangle and a break above 32 carries a measured move to 39. Getting back to Estee Lauder it trades 5% off its most recent 52-week highs, and last week CLOSED right at the top of the WEEKLY range after a near 10% reversal off the intraweek lows. The chart is carving out the right side of a cup base whose pivot would be 347.92, the high of the week ending 9/3, which was a doji candle. A break above there could be very powerful.
Consumer Staples Review
Relative Performance: Not surprising to see weakness on ratio chart against S&P 500 for the staples. It is the "worst" actor among the 11 major S&P sector groups up just better than 7%. The XLP is now 4% off most recent 52 week highs, and top component in PG could have ETF feeling heavy as chart is sporting bearish top pattern.