Sector Watch-Healthcare
Bearish
Sector trading above its…
20-day Moving Average: NO
50-day Moving Average: NO
100-day Moving Average: NO
Sentiment:Analyst rankings on the sector indicate 51 percent “buys” or higher, while the sector’s composite SOIR has been pushing higher. Short interest on the sector is among the lowest 20 percent of readings over the past two years, indicating that there is some optimism in the current trading landscape.
Outlook: The Morgan Stanley Healthcare Payors Index (HMO – 1,730.1) has been trading with increased volatility over the past few weeks as traders adjust to the potential impact the newly elected Congress may have on this group. Technically, HMO has been trading through significant support, which adds to the uncertainty surrounding the sector. The added signs of optimism mentioned above suggest that selling may be prolonged due to the “crowd” having been bullish toward these stocks.
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