Healthcare Sector, Updated

On May 22 this post reviewed…

What Healthcare Needs to Do to Go Bullish

In that post we reviewed the XLV/SPY ratio, noting the hard ‘V’ bounce, which has since continued upward and is most recently consolidating (as broad market relief overtakes H/C’s relative defensive characteristics).

healthcare vs. S&P 500

We also used the nominal chart of XLV to show the ETF in the nose of a small triangle (since broken) along with resistance and a larger triangle (which XLV is currently dealing with).

xlv

As NFTRH subscribers know, I have – despite its valuation, which I think are too rich – been positive on the Medical Device segment for years now and not because I know it as my former customer base in a previous life. But because it has been a consistent market leader and because I know that its businesses are historically insulated from economic soft patches.

I currently hold IHI and recently, per an NFTRH+ highlight, a more boring (and less richly valued) device stock, MDT. During the ‘Medicare Socialization’ hysteria in April we weren’t buying the device babies getting thrown out with the Pharma, Insurance and Services bathwater, as noted in NFTRH 548.

ihi

Sure enough, the recovery in leadership continues apace.

And Medical Device never did lose its standing vs. broad Healthcare.

And nominal IHI is breaking bullish.

Just a little update not having much to do with anything, other than H/C is generally doing as expected, despite the hysterical headlines of April.

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Red Cross courtesy of Icons Land.