XLV Health Care

The Healthcare sector, like many legacy defensive exposures has struggled with the inflationary macro environment. Policy headwinds haven’t helped.

Healthcare remains a bifurcated sector with strength in drug stocks (Pharma, Biotech) and weakness everywhere else. We like other traditional low vol. sectors better for managing market level turbulence in the near-term.

With health insurance in danger of becoming the latest political football and upwards pressure on rates, we’re staying on the sidelines for February.

The Healthcare sector retraced some gains in December, but the intermediate-term bullish reversal at the sector level remains intact supported by strong stock level participation. We think there’s more potential upside here.

Signs of bullish reversal have us long the Healthcare sector entering November.