Healthcare has taken a well deserved pause this week with the XLV lower by .2% heading into Friday. It was preceded by a 6 week winning streak which rose by nearly 9%. Of course a rising tide lifts all boats, but the best of breed names advance more than most. Below we look at how the recent IPO AVXS could have been added to along the way pyramiding a position (I have NO position in the name).

In our Wednesday 10/12 the round 50 number was influential. Stocks that can be bought as they retest former breakout triggers are AVXS. AVXS is a recent healthcare IPO that has risen 171% since inception last February. It obviously has a small sample with earnings with last one higher by 16.4% on 8/12 and losses of 4 and 5.4% on 5/13 and 3/17. The stock is higher 2 of the last 4 weeks which is a bit misleading with gains of 26.7 and 15.3% ending 9/16 and 10/7 (the 3 weeks ending between 9/16-30 all CLOSED within just .51 leading to explosive last week jumping 15.3%). It screamed higher by more than 70% during a 7 week winning streak ending between 4/29-6/10. AVXS took out a cup base trigger of 47.86 in a 4 month base Monday and enter on a retest at 48. Notice the 50 number coming into play here.

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