Chart of the Day: Hiding Out in Healthcare Has Been Profitable
Trying to find the best places for growth in the stock market is a challenge. Liquidity is poor, trends are not apparent, and inflation is high and not coming down. Still, investors are still searching for return.
Healthcare has been a sort of “safe haven” recently with some big pharma companies making a compelling argument to be bought. The Health Care Select Sector ETF ($XLV) is the one we believe has more room to grow.
The XLV recently hit a new high, the trend of higher highs and higher lows in place. This is our textbook definition of an uptrend, but recent price and volume action appears to show that trend has stalled out. Going sideways would be great for awhile, and in fact the candles are showing a cautious tone with teal color on the GoNoGo composite of indicators.
MACD is still on a buy signal, with relative strength holding in as well, while money flow remains bullish. Momentum, as mentioned above is slowing down a bit, but remember this is healthcare, not your big double-digit revenue growers. Nevertheless, safety in healthcare is a good place to hide and receive a nice return.
We like the XLV in TheStreet Pro Portfolio and rate the ETF a Two, or “stockpile on pullbacks.”
At the time of publication, TheStreet Pro Portfolio was long XLV.
