Healthcare
Risk Averse Market - 2015 First and Second quartersWhat I am not showing here is, that the Cyclicals are losing steam, Sensitive Market is in neutral trend, Defensive has been the buyers paradise since OCT 2014.
Why I think that this can be called as a Biotech Bubble is because, It has done the same exact thing Financials did in 2007. ie., Moved tooo quick tooo far.
Yes Bio Tech (Healthcare) sector is a defensive sector, but this is not "the normal" on a defensive sector.
What could fuel this bubble burst ? That's up to the Govt, and the Medical Insurances out there. Most Medical Insurance at this point is so frustrated with the high Drug / Healthcare provider prices.
////////////////////
Note : This is not a Doom and Gloom Idea to trade. Its just my opinion - I am personally taking cautious actions with the market, that is reducing the risk to 1% or under in a trade. And focus on the Strong and Weak Sectors, Rather than the mixed bag.
This may not happen until second quarter of 2015, or even mid 2015. While the trend is up, I am still bullish. Until there is a transition.
Related Ideas - Show how trend changes again IMO.
Weekly Cup and Handle showing promiseA cup and handle pattern can result in strong price movement. Enter a small position and scale in if volume continues to follow through.
Long Mckesson CorpThe Healthcare Providers industry is one of the top performing industries in the strongest Sector in the S&P500, Healthcare. McKesson Corp is in a clear uptrend and has been gaining momentum as the relative performance chart indicates it has been ourperfoming the S&P more and more.
The recent Bollinger Squeeze on the Weekly chart suggests there could be a breakout to new highs. Any break of the uptrend should be an exit signal as the stock may start correcting.
