Healthcare To Make A Run In 2020?

Thursday the “defensive” groups such as real estate and the utilities acted best, but the healthcare names did not receive the advance memo. On a one week and one month period it is competitive however with the 11 major S&P sectors in fourth place, within a percentage of the number one spot. The XLV continues to be weighed down by its largest component in JNJ, which makes up almost 10% of the fund. With that load on its shoulders one has to be impressed with how the ETF is performing. To accentuate the positive the 2nd largest holding has made a nice run and today completed a handle on its double bottom base with a pivot of 258.44. Give the overall space credit for not backing off the usual election season rhetoric, which can have a dampening effect on the space. The XLV has gained 9 of the last 11 weeks, with good volume trends. After the XLV was the best performing group in 2018, it is the second worst thus far in 2019. That could be decent news as the last 2 times it ended the year near the cellar, in 2010 and 2016, it rebounded nicely the following year higher by 12.7 and 22.1% in 2011 and 2017 respectively.

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