Value Skeletons:

There are a number of ways many look to determine the value versus growth trade which seems to be talked about incessantly. Could look at the consumer discretionary versus consumer staples for example, but one that is not talked about all that much is the ratio chart below comparing pharma to biotech names within the healthcare arena. Value players have been calling for a shift in their favor over their growth counterparts for years now, and some day it will prove accurate, but that could still be a long way off. A YTD comparison between the two funds shows a stark difference with the PPH lower by 4%, as the XBI has gained 18% thus far in 2020. The XBI did record a bearish shooting star candle Tuesday, and is up 2.5% this week after last weeks advance of nearly 9%. The PPH which trades in an illiquid fashion, filled in an upside gap fill from the 6/10 session recently and slumped 2.5% Wednesday. As always look at each individual situation on its own merits and use risk management.

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