XLVExpecting healthcare to be bullish into flu season. ABC flat signals the beginning of a new motive wave.
XLV trade ideas
Health Care Sector is due to overperform soon.As you can see from the graph, The Health Care sector has been lagging in comparison to the S&P500.
It's not only oversold on the multiyear range it's been trending at. But also on the RSI.
This position is highly correlated to GILD (posted a couple of days ago) and may be just a tool used by me as Confirmation Bias to keep on hanging :)
Take care of your health Read this article here
Think for a moment. With the society becoming more affluent, people are eating more meals, having the choice to exercise or not, have more entertainment concepts coming up and people are sleeping later and later into the night .Naturally, their health is at stake. And with old age creeping up year on year, medical care is a NECESSITY globally. In fact, the richer the countries, the more "rich diseases" (high cholesterol, high blood pressure, diabetes,etc) are prevalent.
In the rural areas where the income is very much lower, they have no other means of income other than hard labouring job. Also, they eat less a day but work longer, thus the physical body is at work, lubricating the joints and improving the muscles tissues. Farmers are very healthy people, you know ?
This ETF is a must have, imo in anyone's portfolio , for both the good and bad times of the year !
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.
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XLV vs SPYXLV vs SPY has bounced off an area of interest for me. In my opinion this is bullish for healthcare stocks.
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.
XLV/SPY - Rotation to Defensives Continue - Healthcare relative to the S&P500 is breaking out of a falling wedge pattern
- We continue seeing the rotation out of Cyclicals into Defensives
Hourly MACD negative divergence Showing bear divergence on hourly working with stochastic at top of range.
XLV inverted H&SSome strength coming out of a few individual health care names, not a sector I really follow too much, this could be interesting.
ABT ER play Spotted a fractal on ABT corroborated with the respective sector (XLV). This is perfect for an earnings play.
The pattern recognized is a running flat Elliott Correction waves. The formula: impulse, correction and impulse.
Healthcare failed to Break out! Since, I am analyzing some health care stocks, I find it irresponsible to overlook the sector. The market in general has been volatile for past two weeks for now. Also, the news that are coming out are not boosting trader's confidence in the market. We have SEC looking to delist Chinese stocks and late last week one of the hedge funds defaulted on their margin account and do not have enough money to cover their loses leaving the banks on the hook! This is important because others have taken note and are reducing their risk by closing their positions, which translate more sell off in the market. Most specially technology being the most volatile sector is one of the first stocks on the chopping block when one wants to reduce risk. Health also being a traditionally defensive sector, has witness some sell offs thanks to getting to overbought due to pandemic. However, past few days health has been getting very strong and picked up momentum. So much so that it was about to break out. However, it has failed to do so. Given the market condition I expect lower prices in health sector ahead. However, compare to other sectors. Healthcare selloff started much earlier in early Feb; therefore, it is safe to conclude that it will be one of the sectors that may hold its ground much better than other sectors that just has started selling off! At the end of the day, healthcare is one of the defensive sectors when investors want to reduce risk.
XLV still struggles, relative to the SPX!Can Georgia run-off election in Jan help XLV bulls or bears?
The words " Uncertain Times " is a buzz word for media.XLV is on a strong up trend, even if we have a few days of pull back over the election issues.
XLV +20% don't miss outFINANCIAL EDUCATION SHOULD BE FREE TO ALL.
We see a cup and handle swell as a bull flag. Very bullish patterns.
looks like resistance turned into support at 108.
Health Care etf is also a very good way to diversify your account and rotate into underperforming sectors.
STOP: 101
Ascending TriangleGappy under price so beware. Gaps overhead cause R. Gaps underneath can provide support but can also fill )o:
There is also several bearish rising wedges in the yearly chart but XLV has broken the bottom trendline of each to some degree
Rising wedges are usually bearish and resembles a channel but both lines slope up and narrow at the apex
A RW causes an issue with supply and demand due to lack of healthy pull backs. Can be a very long term pattern
An ascending triangle is a chart pattern used in technical analysis. It is created by price moves that allow for a horizontal line to be drawn along the swing highs, and a rising trendline to be drawn along the swing lows.
Ascending triangles are thought of as bullish, but in reality that can bust and break down as well
Just an observation
Top 10 Holdings
Johnson & Johnson
9.45%
UnitedHealth Group Inc
7.59%
Pfizer Inc
5.16%
Merck & Co Inc
4.98%
Thermo Fisher Scientific Inc
4.90%
Abbott Laboratories
4.87%
AbbVie Inc
3.93%
Danaher Corp
3.79%
Medtronic PLC
3.54%
Bristol-Myers Squibb Company
Healthcare Critical LevelTechnical Analysis
The 200ema has been tested several times, and has worked very well as a mid-term support level.
Risk reward ratio is easy to set-up with a 3:1 ratio approximately.
Sector & Industry Analysis
It is important to note that the industries inside the sector have different performance, which has been very useful to analyze what the market thinks of the risk of healthcare with the election coming up.
The following list is the Healthcare Industries with a 6-month performance % move, as well as a some good ETF to follow/trade:
Healthcare Technology --> +56% // have not found appropriate ETF.
Biotechnology --> +21% // XBI (smaller biotech), IBB (large-cap biotech), ARKG (genomics)
Healthcare Equipment --> +19% // IHI
Healthcare Providers --> +5.51% // IHF
Pharmaceuticals --> -1.3% // IHE
XLV: Can Health Care lead the market in Coronaland recovery?I really like UNH in this space. Health insurance names in general seem to want to push higher. Nice inverse head and shoulders here on the daily with what could be
a market bottom. Starting to pick up a bit of biotech as well to compliment
XLVAppears to be a true bearish engulfing candle in the pink circle (a lot of traders use this term too loosely imo). Like this short unless today's high is broken.
