Healthcare Flags Trying to Break Out

We noted the high, tight one on IBB yesterday and today it and its bros in the Healthcare sector appear to want to break these bull flags. In line with our rotation theme, I added both IBB and XLV yesterday and have held a couple of device companies all along. XLV was a re-buy after taking profit a couple weeks ago. Here’s a daily view…

xlv, ihi, ibb

Per NFTRH’s weekly ‘vs. SPY’ chart from the Market Internals segment, XLV/SPY just looked too good vs. the broad to be sitting out of, so I bought the consolidation flag. I want to have sector preferences (and a ‘rotation’ theme) for as long as the market remains bullish. As an aside, Industrials have looked good vs. SPY all along. Financials are the most interest rate dependent item and everything else look like a relative ‘avoid’.

xlf vs. spy

Subscribe to NFTRH Premium for your 40-55 page weekly report, interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow via Twitter @BiiwiiNFTRH, StockTwits, RSS or sign up to receive posts directly by email (right sidebar).