Big Can Be Beautiful:
In the type of market climate we are in participants are looking for safety if they want any exposure at all. Healthcare often fits that bill, but affinity is geared toward the larger players which many feel can weather the storm well. The next question that comes into play is which ones are acting well. Stocks that are behaving in a bullish manner on a soft tape deserve respect and can be where to dip the proverbial toe in. BIIB and AMGN could be put on that “acting well” list as they are 32 and 11% off their most recent 52-week highs with AMGN doing most of that this week slipping almost 7%. But the chart below is VRTX is a few percent away from a nice MONTHLY cup base pivot of 306.18 in a pattern more than 2 years long and we know the longer the base the greater the space upon breakout. Interestingly enough the very round 300 number has never been taken out on a WEEKLY or MONTHLY basis as the two months of July 2020 and August 2022 were above intraweek but could not CLOSE above it.