Mundane Rebound:

A good way to determine investor sentiment in the healthcare space is to compare the conservative pharma names (although some of those have behaved like bullish tech stocks of the past recently) to the more fickle biotech names. If the ratio chart below is any indication the run that the biotechs have had may be coming to a pause. But remember just because one of the groups is acting better it does not mean both are not attractive. In fact, that may be the case presently. The PPH is home to mega-cap names such as MRK BMY JNJ MRK, and PFE to name a few. The latter is fighting to stay above the very round 50 number and is up this week heading into Friday following through after last week’s first double-digit WEEKLY gain of 2022. The XBI is still 46% off most recent 52-week highs and giving a small bit back of last week’s 14% jump. Perhaps a hybrid of the two going forward, as long as the XBI remains above 64 and the PPH above 75, makes sense.

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