Health Care Sector Deep Dive – 11/9/2023
It’s historically the best month of the year for Health Care stocks, and so far, November is living up to its reputation. The sector is already up nearly 3% in just over a week, outpacing its 2.5% average November gain since 1990.
That rally came at just the right time, keeping intact a level of support that’s been in place for more than 2 years now. It’s still tough to get excited about a group that’s stuck within a huge trading range and can’t sustain rallies, but at least they aren’t breaking down.
Even the equally weighted sector managed to maintain those prior lows, despite having lagged the market cap weighted sector for most of the year.
Unfortunately, trends beneath the surface don’t paint a rosy picture, even as support at the index level continues to hold. Just 16% of Health Care stocks are above their 100 and 200-day moving averages, a number on par with the weakest sectors in the index.
And even though the sector overall is still above last year’s lows, half of the sector’s membership has set new lows in 2023, and 40% are still beneath last year’s trough levels.
Every sub industry in the Health Care sector is down for the year, save one.