Near the end of each weekly report we update a bunch of charts, usually of items I either hold, have recently held or am watching in order to hold. Here are some of the Healthcare related items that routinely populate the segment.
XLV, the general Healthcare sector SPDR, has a measurement of 89 and damned if it does not think it can get to it. Personally, I sold the spike up to 80 and used GILD, MZOR and BMY instead. But obviously I wish I’d held this too.
Old friend ABBV was sold on the run up to the 1st target of 75. Dohhh… the plan was to be long XLV instead, since its pattern is so similar. But I never got around to it. Anyway, ABBV is on its way to its best target.
GILD was a happy story in that I was able to buy the lows and sell the highs right up until I decided to stop playing as GILD hit my initial target of 84 last week. I’d only re-buy a hard retrace.
BMY has been charted the last couple of weeks with the advice of two targets, conservative and not so conservative. I sold it at the conservative target and am not looking back.
Over in Medical Devices, I took a partial profit in surgical robot maker MZOR; and now, the reaction.
I muffed CRY, first by being too miserly in trying to buy the big drop in the spring (I was trying to buy at 12 or 13, which is major support) and then I traded it successfully (though very unspectacularly), but sold in fear of a double top (see final chart below) and missed the boat on the big jump over the last couple of weeks.
I had bought EW in the spring before its big break upward. Then I sold said break upward, fearing a… you guessed it, double top. Funnily enough this one is still viable as a double top but it is what painted my view of CRY above. I had a psychological model of this in my head when I mis-managed CRY.
Just one faulty player’s recent exploits in the Healthcare sector. By the way, if you think the economy is going to weaken and Treasury yields are going to stay low, this sector should out perform (go up more or decline less). But if you think yields are going to rise, this sector maybe be setting up for disappointment (perhaps for the momos desperately buying now).
As of now however, Healthcare is the only sector looking bullish vs. SPY (although Energy bears watching too).
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