I'm Long ModernaI've been waiting for MRNA to have some stabilization during it's pullbacks -- now is the time in my opinion. For pharmaceutical companies the vaccines have been their "bread and butter" and they'll ensure they continue to innovate through a variety of new accommodations for people around the world pertaining to Covid, HIV, and anything else they can acquire funding and/or applications for.
XLV
Sector Winners and Losers week ending 9/3Defensive sectors led the sector list during a week where employment data kept investors guessing on the Fed's timeline for bond tapering.
Real Estate (XLRE) led the list throughout the week. The sector is benefiting from low interest rates while it also remains a good hedge against inflation. The Fed continues to put full employment ahead of inflation as the priority for interest rate hikes, so the sector will continue to perform if labor recovery slows.
Health Care (XLV) was the second best sector, following by Consumer Staples (XLP) and Utilities (XLU).
The cyclical sectors ended the week lower with Financials (XLF) and Energy (XLE) sitting at the bottom of the sector list. The slowing labor market and missed PMI numbers this week showed some weakness in the economy.
XLV - an attractive buy
The pandemic has opened up investing opportunities in the healthcare sector. While buying stock in major companies may be attractive, I feel that investing in healthcare ETF (XLV) may be a better and more conservative option.
XLV recently hit a 52 week high but as you can see it has been pulling back (perhaps in part due to the uncertainty caused by the delta variant). I see significant support between 133.70-134.40 nearby and will be watching price action closely to enter a long trade.
If you like my analysis, please give it a “thumbs up” and follow me to get immediate notifications.
Always use sound money and risk management in all your trades.
Sector Winners and Losers week ending 8/20Defensive sectors led throughout this week as the Market absorbed data that showed a slowing economic recovery and meeting minutes from the Fed that indicated tapering could begin this year.
Utilities (XLU) and Health Care (XLV) exchanged the lead several times, and the finish was close. Utilities came out on top as a favorite place for investors to keep money in equities, but take a defensive stance toward the economy. Health Care also did well as the world watches another wave of the pandemic brought on by the Delta variant of COVID.
Technology (XLK) also mixed in with the defensive sectors at the top of the list. Big tech seems to be another safe play for equity investors with Microsoft (MSFT), Apple (AAPL), and Alphabet (GOOGL) all turning in strong financials and appear resilient to new waves of lockdowns.
Suffering the most from fears of economic slowdown as well as the pandemic, Energy (XLE) came in the last place for the week with a huge loss of over 7%.
Sector Winners and Losers week ending 8/6Several sectors rallied into the lead throughout the week, but Financials (XLF) came from behind to end the week as the top sector. On Friday, the sector added 2% on top of gains earlier in the week. The rally came as employment data was better than expected, sending Treasury yields higher and brightening the prospects for big bank performance tied to the yields.
Utilities (XLU) enjoyed the top spot on Monday and early Tuesday, rallied again on Thursday, but fell to second place on Friday. The defensive sector shows investors were cautious throughout the week as indexes set new records amidst worries the rising Delta variant might pull back the economic recovery.
Health Services (XLV) took the lead spot on Wednesday, likely on the view that there will be an increased demand for vaccines and therapies that can handle the resurgence of the pandemic.
Consumer Staples (XLP) was the only sector to decline this week, putting it at the bottom of the sector list.
Are Covid Stocks Coming Back?If there is any hope for the S&P right now it may very well come from the healthcare sector with mega blue chip Johnson & Johnson.
JNJ has managed to put in consecutive higher highs and higher lows on the weekly, and now also is confirming support on the .618 fibonacci level at $165.40.
However, there appears to still be much selling pressure at just above $168, so don't be surprised if we continue to see consolidation for another a week or two before getting the confirmed breakout above our red resistance line at the aforementioned $168 price level.
If resistance at this level is broken, we will be seeing a possible retest of blue sky all time highs for the healthcare giant JNJ.
In the meantime, I am liking the idea of small longs along the .618 ($165.40) area as long as the upward sloping green trend is not violated.
Sector Rotation July 2020 - Money on Defensive?This week's dip on the AMEX:SPY revealed something important within the Sector Rotation model. For the last quarter the Sector Rotation model has been giving mixed signals following the clear predictive path it forecasted coming out of March 2020. This recent price shock provided a glimpse into where the money is moving right now!
Sector Winners and Losers week ending 6/11It was a mix of defensive sectors and growth stocks at the top of the sector list this week, while the cyclical sectors took a step back.
Real Estate (XLRE) led the sector list, continuing to gain on a solid housing market, higher rents, as well as a defense against potential inflation.
Health Care (XLV) also rallied this week, ending the week in second place on the sector list. Eli Lilly (LLY) helped boost the sector with news that the FDA may approve a new Alzheimer's therapy. The stock and the sector faded late in the week on the controversy over statements made by the company.
Technology (XLK) and Consumer Discretionary (XLY) were third and fourth on the list, with steady increases throughout the week as investors became more confident in the growth trade.
The cyclical stocks fell this past week. Financials (XLF) suffered from lower treasury yields, potentially impacting interest rates that drive revenue for the sector. Industrials (XLI) and Materials (XLB) declined as more of congress pushes back on Biden's infrastructure spending proposals.
Sector Winners and Losers week ending 6/4Energy (XLE) and Real Estate (XLRE) led the sector list for the week, establishing their lead early in the week. Energy got a boost from the rise in oil prices on high demand. Real Estate is gathering momentum from rising housing and rental prices while also being a great hedge against inflation.
The focus on employment data released on Friday morning is clear in two pivots. There was a sharp sell-off of most sectors except Consumer Staples (XLP) and Utilities (XLU) on Thursday ahead of the report. The two sectors are good defensive plays when investors get nervous about how the market may react to news or events.
After the report was released, Technology (XLK), Consumer Discretionary (XLY), and Communications (XLC) rallied on Friday. It seems the employment data was good enough to keep a positive outlook, while not so good to drive more fears of tapering by the Fed.
Health Care (XLV) was the worst-performing sector for the week.
Sector Winners and Losers week ending 5/28Growth sectors stole the show this week as investors put inflation worries aside and boosted Communications (XLC) and Technology (XLK) early in the week. The focus was on the growth sectors from Monday to Wednesday. Technology faded back in the list, buy Consumer Discretionary (XLY) joined Communications to end the week at the top of the list.
On Thursday, there was a rotation into cyclicals, bringing Industrials (XLI) higher in the list. Industrials ended the week in fourth place.
Friday brought out the defensive plays heading into a three-day weekend and the start of the summer months. That gave a boost to Real Estate (XLRE), Health Care (XLV), Utilities (XLU), and Consumer Staples (XLP). Real Estate (XLRE) ended in third place for the week, while Health Care and Utilities remained at the bottom two sectors for the week.
Elliott Wave View: XLV Extending HigherShort term Elliott Wave View in XLV (Healthcare EtF) suggests the rally from March 5, 2021 low is unfolding as a 5 waves impulse Elliott Wave structure. Up from March 5 low, wave 1 ended at 115.79 and pullback in wave 2 ended at 113.35. The ETF extended higher again in wave 3 which ended at 125.19. Pullback in wave 4 ended at 121.38 as the 1 hour chart below shows. Internal of wave 4 unfolded as a zigzag Elliott Wave structure. Wave ((a)) ended at 123.03, wave ((b)) ended at 124.10 and wave ((c)) ended at 121.38
The ETF has rallied and broken above wave 3 high at 125.19, suggesting wave 5 has started. Up from wave 4 low, wave (i) ended at 123.39 and pullback in wave (ii) ended at 122.52. The ETF extended higher again in wave (iii) towards 123.86. Pullback in wave (iv) ended at 122.95, and wave (v) of ((i)) ended at 123.88. The ETF then corrects cycle from May 13, 2021 low in larger degree 3, 7, or 11 swing in wave ((ii)) which ended at 121.59. Up from there, wave (i) ended at 125.66, and pullback in wave (ii) is in progress to correct cycle from May 19 low in 3, 7, or 11 swing before the rally resumes.
Near term, as far as pivot at 121.38 low stays intact, expect wave (ii) dips to find support in 3, 7, or 11 swing for more upside. The next extreme area in 3 swing comes at 123 – 123.8 as highlighted in blue box on the chart. The blue box area should find buyers for more upside or 3 waves reaction higher at least.
Sector Rotation May 2021 - Where is the money flowing?My last video about Sector rotation was in March 2021 where I talked about the Consumer Staples sector. NYSE:PG and NYSE:JNJ have so far performed to expectations. It is worth looking at the model once more now to see where the next potential money flow will be.
From March 2021:
Sector Rotation theory suggests that from market bottoms the two sectors that should lead are Consumer Discretionary and Technology. These two sectors did in fact lead the market out of the COVID crash. The next sectors to lead as the market matures are Industrials and Materials. These too followed the theory through 2020 as the bull market grew. At the market top Energy is supposed to lead and sure enough we have seen quite the run on Energy related stocks. What that means going forward if the theory holds is that Consumer Staples and Healthcare should outperform the market.
Sector Winners and Losers week ending 4/23The S&P 500 had a slight loss for the week, but there were two sectors that soared despite the market.
Real Estate (XLRE) ended the week as the top sector, advancing over 2%. Three factors helped the sector breakout and then stay on top the whole week. The economic recovery is a boon for the real estate industry as occupancy rates climb driving demand and prices higher. Interest rates remain low thanks to the Fed's continued easy money policy, keeping costs low. And in a climate of nervous investors, fearful of new lockdowns around the world, the real estate sector becomes a nice defensive play that has growth potential as well.
Healthcare (XLV) was the second best sector of the week. The sector has lagged behind the S&P 500 since the beginning of the year. Positive earnings reports from UnitedHealth (UNH) and Johnson & Johnson (JNJ) over the past few weeks gave it the momentum needed to catch up with a 1.81% advance this week.
The only other sectors that had gains for the week were Materials (XLB) and Industrials (XLI), both responding positively to great economic recovery news.
At the bottom of the sector list were Energy (XLE) and Consumer Discretionary (XLY). Energy stocks continue to underperform as oil prices have been dropping in recent weeks. Consumer Discretionary was a big part of the S&P 500 setting records the previous three weeks and was due to pause or pullback this week. Earnings reports from Tesla (TSLA) and Amazon (AMZN) next week will have a big influence on the sector performance.
Sector Rotation March 2021Recent market sector rotation coming out of the COVID crash has confirmed Sector Rotation theory. I made this video to give viewers a brief introduction to the theory and provide some actionable investing ideas based on what Sector Rotation suggests will be the next stocks to potentially outperform.
Sector Rotation theory suggests that from market bottoms the two sectors that should lead are Consumer Discretionary and Technology. These two sectors did in fact lead the market out of the COVID crash. The next sectors to lead as the market matures are Industrials and Materials. These too followed the theory through 2020 as the bull market grew. At the market top Energy is supposed to lead and sure enough we have seen quite the run on Energy related stocks. What that means going forward if the theory holds is that Consumer Staples and Healthcare should outperform the market.
Sector Winners and Losers week ending 2/19It was a week for the cyclical stocks. Energy (XLE), Financials (XLF), Materials (XLB), and Industrials (XLI) were the only sectors to close the week with gains.
That was not the case for the entire week. Communication Services (XLC) started the week with gains but faded in the last two days.
Utilities (XLU) had one day as the leading sector on Thursday, but moved back to the bottom of the list on Friday.
Health Care (XLV) was the worst performing sector of the week.
Sector Winners and Losers week ending 2/12Energy (XLE) led for a second week in a row as crude oil prices continue to rise and optimism for economic recovery to bring demand back to oil and gas as transportation, travel and leisure sectors bounce back.
Technology (XLK) and Health (XLV) led for Thursday as Energy pulled back for a day. However, Energy bounced back up to the week's highs on Friday.
Consumer Staples (XLP) and Consumer Discretionary (XLY) both lost for the week. Core CPI numbers showed lower than expected inflation and weighed down on the two sectors.
Utilities (XLU) was the bottom sector for the week. There was not much interest in this defensive play for equities this week.
Sector Winners and Losers week ending 2/5Energy (XLE) was back on top for the first week of February. The sector benefited from higher than expected demand in oil that also raise crude oil prices throughout the week.
Technology (XLK) started the week in the lead, having a strong Monday. The Consumer Discretionary (XLY) took the lead on Tuesday. Financials (XLF) briefly moved to the top spot on Thursday, but was soon passed by Energy again.
Health Care (XLV) was at the bottom of the list for the week.
Materials (XLB) was the worst performing sector on Thursday, but led the sectors on Friday.
Swing Trade: 🏥 Healtcare sector: Vapo BreakoutHi guys,
Sharing one of my today swingtrades in healtcare.
Nice setup for breakout.
If you like the idea, do not forget to support with a 👍 like and follow.
Leave a comment that is helpful or encouraging. Let's master the markets together.