Patience Warranted:

In whatever group one looks into after Monday, there should be no rush to do anything. One should have a watch list already prepared to try and take advantage of any opportunity in the potential added sell-off that could arise as the week proceeds. Healthcare may draw some interest as many look toward the “safety” it provides. Of course, that is not always the case, and we have seen some big drawdowns in the space before Monday. LLY recorded its first 4-week losing streak since late 2017 and is now nearing bear market mode 16% off highs made just one month ago. BMY has gained ground in just 3 sessions in the last one-month period. On the other hand, BHVN has held up very well now 5% off highs, and today undercut a promising bull flag formation at the round 140 number. A name that looks somewhat attractive after today’s slide is the chart of PFE below. If the 43 area can hold up, a double bottom base could be setting up.

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