HEALTHCARE LEADERSHIP
INDEXES TRADING OVER THEIR 200-DAY AVERAGES... The first three charts show health-related stock indexes. There's one thing all three have in common. They're all trading over their 200-day moving averages. Outside of technology, this the only other sector that can make that claim. HealthCare is just behind technology as the top performing sector year-to-date.
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HEALTH CARE SELECT SPDR... Chart 4 shows the Health Care Select SPDR that we plot in our Performance Charts. It shows the XLV trading more than 20% over the low hit last July. The selloff from January through February stabilized at last September's low. And, it's trading over both moving average lines. Chart 5 plots a relative strength ratio of the XLV divided by the S&P 500. It's another way to see how well the Healthcare group has done compared to the broader market. The ratio is also trading over both moving average lines.
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FIDELITY HEALTHCARE LEADERS... One of the ways to participate in the Healthcare group is through a sector mutual fund. The next three charts show the Fidelity Select Biotechnology, Pharmaceuticals, and Health Care Funds. All three are showing promising chart patterns -- and good relative strength. What would make them even more impressive would be their ability to break through the tops of their respective trading ranges. They're not that far away. We recently noted that large-cap growth stocks were showing market leadership. Many growth-oriented mutual funds that have been doing well of late include a heavy dose of healthcare stocks. We'll show some of the recent leaders in our next update.
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