(Premium) January Health Care Outlook

Health Care is setting new highs on a relative basis, and that’s nothing to ignore. There’s no reason to negative on the sector unless the ratio is back below those 2020 highs.

Pharma continues to be a bright spot. Merck is coming out of a 20-year base.

Eli Lilly continues to march higher as well. Looking at this chart alone, you wouldn’t guess that broad equity indexes experienced a bear market in 2022. Talk about relative strength!

Health Care distributors and Managed Care companies are both at or near all-time highs, too. It’s been the medical device companies that have held the sector back. Those stocks tend to trade more like those in the Information Technology sector, so it should be no surprise that they’ve lagged. If that changes, though, Health Care will be a force to be reckoned with.

Here’s one of those device companies trying to break out of a 3-year base. We want to be long BSX with a target of 60 if it’s above 46.

The post (Premium) January Health Care Outlook first appeared on Grindstone Intelligence.