Unhealthy Care

Whether the Services component…

cvs

The Insurance component…

unh

The Pharmaceuticals component…

pph

Or now even the former market leader, the Medical Device component…

ihi

…the US Healthcare sector has not been the place to be as it sports varying shades of bearish to concerning.

xlv

Healthcare is relatively defensive with even some counter-cyclical characteristics, and so NFTRH has tracked its under performance during the stock market rally out of the Christmas Eve massacre. But that downtrend leadership (vs. SPY) is now taking a nosedive.

It makes me take interest again in Healthcare, although the Trump years have relatively impaired the sector while the Obama years made it a leader. It would be a good idea to figure out the dynamics of what’s in play and not being a political animal, I am not an authority there.

But I am a man who stares at charts and this one is telling me that a little more of a beating for XLV’s ratio to SPY and some components might start to look relatively attractive.

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Featured image courtesy IconsLand