Equipment Check:
On a YTD basis, healthcare via the XLV, while higher, is the weakest of the 11 major S&P sectors. In a group so diverse, you can play defense with pharma (supposedly) or offense with small-cap biotech, there is bound to be strength in some sliver of the space. The performance chart below comparing the major ETFs shows a clear leader in the IHI against the XLV, XBI, or the IHF. The IHI is just 1% off its most recent 52-week highs, while peers XLV, XBI, and IHF are off about 10% from their respective annual peaks. This slow-moving supertanker of an ETF looks poised to trade up to a cup base pivot near 65 on its MONTHLY chart and notice how it just broke above a 2 1/2 year downtrend on the ratio chart against the XLV. Could it be ready to outperform similar to how it did between 2015-22? Leaders in the niche group include MASI PODD and ISRG. All 3 are sporting bull flags and as we come toward the end of November I will be paying close attention to the MONTHLY chart of MASI and if it can CLOSE above the 50 MONTH SMA and a double bottom base that will take shape. If it finishes next week above 175 enter and add to above 198.10 double bottom pivot. Then a possible trip to the very round 300 number later in 2025, a level last touched in late 2021.