As investors have yearned for a defensive nature in recent months, in healthcare pharmaceuticals have taken charge over biotech. The ratio chart below shows the evidence. The PPH is trading right at 52-week highs, while the XBI is still languishing 27% off its peak made in February, and is still well below its 50 and 200 day SMAs. There could be an argument to be made to own both, in a “barbell” approach (of course own only best in breed in each). But the ratio chart below suggests overweight pharma names, that most likely pay nice dividend yields. In fact, some of the top holdings in the PPH pay dividend yields near 4%. And inflated dividend yields are often a function somewhat of weak PRICE action, but the top components we are speaking of include PFE ABBV SNY and NVS sport good-looking charts. And on top of that they offer regional diversification. The XBI CLOSED at the top of its WEEKLY range, this past week, but in order to get real bullish on the group the ETF needs to reclaim its 200 day SMA in quick fashion.