The Healthcare Sector is Very Oversold and Due for a Rally
- The stock market bounced nicely off its oversold condition yesterday…and depending on this week’s announcements, it could bounce even further. However, the divergence between the bond & stock markets remains a big one, so we believe any further rally will provide another opportunity to raise cash and get more defensive.
- One sector that could do well over the rest of this year is the healthcare sector. The XLV healthcare ETF (and quite a few individual stocks in the sector) have reached the kind of oversold conditions that have been followed by strong rallies in the past.