Risk Aversion:
As biotech continues to try and find its way, pharma is doing a good job of holding the baton for healthcare until it does. The chart of the PPH below shows how well the group is doing via a nice visual representation. It has acted well after a recent double bottom breakout and we know the best breakouts tend to work right away. JNJ has behaved nicely following a break above a cup with handle pivot of 171.28 on 7/23. ABC is doing the same after a 121.42 double bottom trigger from 7/29. This is not to say biotech should be ignored. Always have a watchlist ready for when the group complexion changes for the better. One possible name could be SGEN since we are discussing mature healthcare plays. It is rounding the right side of a cup-base as it is higher by more than 3% this week after the prior week jumped 5.3% in above-average WEEKLY volume. If it can get above its 200 day SMA at 162, it could accelerate to prior highs near the very round 200 number. At the moment conservative pharma is in charge against the more volatile biotechs. It could change or it could not, and both can perform well at the same time too. As always use your stock-picking skills to pick which ones should excel.