Healthcare Hiccup:

It feels like a long, long time ago when healthcare, via the XLV was briefly the best performing major S&P sector in 2020. Currently it is now the third best on a YTD, trailing both technology and communications services (both of those two groups are now positive this year so far). For the week it was the only major sector in the red, falling fractionally by .8%. The XLV continues to struggle putting space between itself and the very round 100 number. All of the last six weeks were above 100 intraweek, but only three have managed to CLOSE above par. It could be given some slack as the 4 weeks ending between 3/27-4/17 stormed higher by a combined 25%. The more “risk on” cousin, the XBI, however is having no issues with the 100 number, as it added 3.3% this week, and its second straight CLOSE above the figure. Below is the ratio chart that shows that until circumstances change, your capital should be deployed into the biotech generals.

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