Pharma Rolling:
Is the recent outperformance in the PPH over the XBI signifying “risk off” in the healthcare arena or is there room for both to behave well? I think the latter even though the daily chart below comparing the two shows pharma pulling away against biotech. My belief is that the XBI will grind higher into the very round par number into the latter part of the second half and I keep coming back to the MONTHLY chart here which shows the break ABOVE the bearish head and shoulders formation in December 2023 and we know from FALSE moves come fast ones in the opposite direction. It moved quickly to the very round par number which it could not jump above throughout most of 2024. Notice it backed off toward the 70 area with a huge bullish hammer candle in April, where it found a bounce four previous times in 2018, 2020, 2022, and 2023. The ratio chart does indicate it has done nothing against the more mature IBB for 3 years following the 2021 downtrend. One name in particular I am paying attention to is INCY as it gets comfortable above the 200-day SMA after not being deterred by the upside gap fill from the 3/14 session (and acting well POST breakout above bullish inverse head and shoulders breakout). Enter with a buy stop above a 71.07 cup with handle trigger.