The Best Way To Play The Health Care Stocks
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. Everyone should expect more political criticism of 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 and make money in this diverse industry group?
Despite today’s declines in most of the major health care stocks, the 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 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.
Note the chart of the XLV below; read the charts and trade wisely!
About the Author
Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He successfully managed money for a large, affluent private client group. Nick is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. After applying his knowledge to his client base and meeting his personal monetary goals, he decided it was time to begin teaching those interested in learning his trading and investing methodology. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.com and realize his dream of educating others about the truth of the markets. He now co-heads the education department at InTheMoneyStocks and enlightens thousands of members, along with providing consulting services to hedge funds and institutions. Nicholas Santiago is known for his master cycle dates and proprietary count systems. He developed these over decades of study and members of InTheMoneyStocks have enjoyed the rewards. He swing trades and day trades large caps, along with commodities, currencies and futures. If it has price, pattern and time aligning, he is making money on it.
