(Premium) April Health Care Outlook
(Premium) April Health Care Outlook
The Health Care sector has been a big laggard in 2023, outperforming only the Financials year-to-date. Despite that, the sector has yet to show material weakness on an absolute basis, so there’s no reason to turn overly bearish. It’s well above last year’s lows, and it recently found support at the 161.8% retracement from the 2020 COVID collapse.
The sector is quite diverse, with industries that tend to trade on their own merits, rather than on what Health Care overall is doing. Those industries include some that tend to look and act more like tech stocks – and that where we can find opportunities in this market.
Boston Scientific is still our favorite setup. It’s coming out of a 2 year base that started with the COVID decline, and last week it was setting new highs. We want to own it with a target of 60, which represents the 161.8% Fibonacci retracement from that 2020 decline.
Stryker is another that we’ve kept on our radar. If it’s above the 161.8% retracement from the COVID selloff, we want to be long with a target of 378.
The most fun chart in the sector is HCA. Call me crazy, but price action over the last 18-months looks identical to the price action from a couple years ago. Check it out: an earnings rally into consolidation, a failed breakout followed by a huge selloff, then stair steps higher to challenge the former highs. Last time, HCA rose another 70% after the breakout. Does it do so again?
If it’s above 275, we’re buying it with a target of 400.
View the rest of our April outlook:
April Technical Market Outlook
(Premium) April FICC Outlook
(Premium) April Information Technology Outlook
(Premium) April Communication Services Outlook
(Premium) April Consumer Discretionary Outlook
(Premium) April Industrials Outlook
(Premium) April Financials Outlook
(Premium) April Energy Outlook
(Premium) April Materials Outlook
(Premium) April Health Care Outlook
(Premium) April Consumer Staples Outlook
(Premium) April Real Estate Outlook
(Premium) April Utilities Outlook
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