Tentative Healthcare Stance:
With the XBI backing further away from the top of the 120-140 range today, healthcare investors were showing their preference for less volatility within. Names in the PPH, known for its more mature, steady, lower beta names, were in demand. MRK rose 2.4%, and top holding AZN which is just 3% off most recent 52 week highs is stubborn to give back any of last weeks powerful advance of almost 9%. Look to see if it can recapture the 60.29 double bottom pivot it originally took out on 9/24 for just one day. Below is the chart of LLY, and it is very close to the UNCH mark for the week, and would be trying to avoid a 5th WEEKLY loss in the last 6. The stock has doubled from top to bottom of the range dating back to last year’s election and the highs made in late August. Keep an eye on NVO too, which we profiled in our 9/21 Healthcare Note, which produced a bullish harami pattern. These names may catch some love if the market’s jittery behavior continues.