Not All Health Care Stocks Are Created Equal, So Play It This Way $XLV

This morning, the leading health care stocks are trading lower to start the session. Politicians on both sides of the isle have been very critical of drug prices and health care costs. You can easily see and expect more political criticism of the health care companies as the Democratic party tries to find a 2020 nominee. President Trump has also vowed to lower drug costs, so where do you invest in this diverse industry group?

Despite today's declines in most of the major health care stocks the over chart pattern of the Health Care Select Sector SPDR Fund (NYSEArca:XLV) is still looking good on the charts. This leading health care ETF holds companies such as Johnson & Johnson (NYSE:JNJ), Pfizer Inc (NYSE:PFE), UnitedHealth Group Incorporated (NYSE:UNH), Merck & Co. Inc (NYSE:MRK), Abbott Laboratories (NYSE:ABT), Medtronic Plc (NYSE:MDT), Thermo Fisher Scientific Inc (NYSE:TMO), Amgen Inc (NASDAQ:AMGN), AbbVie Inc (NYSE:ABBV) and Eli Lilly and Company (NYSE:LLY). This ETF is fairly diverse and is still showing a decent chart pattern on the bigger time-frames. At this time, the XLV is trading above its 50 and 200- day moving averages. As long as the XLV remains above these key levels this ETF continues to be in good shape. Should a major decline occur in the XLV then there should be major chart support around the $86.00 area. This is where the ETF was defended in mid-April 2019 and would likely be support again if retested.

The bottom line is that health care stocks have become very difficult to trade and invest in on an individual basis lately. The best way to play the broad based industry group is likely through an ETF like the XLV. This ETF gives you diversity to the sector and holds some of the best companies in the world. Should the equity trade sideways or even lower it pays a 1.6% dividend while you wait for some appreciation to occur.




Nicholas Santiago
InTheMoneyStocks.com

The Health Care Select Sector SPDR Fund $XLV Is Now Attractive

As we all know, the health care stocks have been getting crushed this week. In fact, a fair case can be made that they have struggled since early March 2019 when the Health Care Select Sector SPDR Fund (NYSEARCA:XLV) traded as high as $93.45 a share. Today, the XLV is trading around the $86.00 level. Trader can easily see that the XLV is now trading sharply below its important 50 and 200-day moving averages. This is generally viewed as a sign of weakness and often an indication of further downside action in the sector. Now before we get too negative, traders should note that there is some saving grace for the sector coming up. First, the 100-week moving average is around the $85.60 area, so this is going to be some important support for the XLV near term. Second, there is also a very strong retrace level coming up as well and this could help support the XLV in the near term around the $85.50 level. So technically speaking, the XLV looks very attractive at this time despite many of the leading healthcare stocks being sold off.





Nicholas Santiago
InTheMoneyStocks

Trend is your friend, till its not...

XLV buy 82.58

optionable
https://us.spdrs.com/en/etf/health-care-select-sector-spdr-fund-XLV

















normal chart




log chart

XLV D

Get out of this stock! It is about to collapse! This is the double top! Monday will be brutal!