Seasonality Tailwinds:

As a prosperous 2019 comes to a close, it is a good time to look forward. Of course PRICE action will always supersede any other indicators, but it does pay to do some homework that may provide any edge. Below is the chart of the XLV, and how it has performed every month, dating back to 2015. It shows the percentage where the ETF CLOSES higher than it started the month, and the January-July period has easily been the strongest. Four of the last five years, the fund has finished better than where it began in January and again between May-July. February-March has been decent with each CLOSING higher 3 of the last 5 years. Healthcare has put up a robust 2019, with the XLV higher by 19% with a few sessions left (XBI has advanced 36%). Most of that coming during the last 3 month period, where it is the best performing major S&P sector outdoing even technology. They say it is not where you start, but where you finish, and if its behavior the last 3 months is any indication expect the group to have an energetic start to 2020.

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