Hello TheoTrader,
Save for Friday’s solid bounce, the carnage in a lot of the high-flying growth names that led the charge earlier this year continued. It’s looking like the blood bath is nearing its end, but another sector that I’ve highlighted continued to excel.
That sector is healthcare, and it actually went into the weekend with its highest weekly close in history. Individual stocks in the sector are breaking out left and right, and many of them hitting new all-time highs.
This goes to show that despite the turbulence at the index level, there are still numerous opportunities to capitalize on for bulls in this tape. 
The most exciting part of the healthcare breakout is happening with biotech. Be sure to check out my article from the weekend on the sector.
Compared to last week, healthcare is even stronger as it captured the 30-day leadership role. Technology (XLK) is hanging on by a thread as the year-to-date leader, as utilities (XLU) try to take it away.
Given that these two sectors are the ones dominating the board, perhaps it isn’t ironic that biotech is becoming all the rage.
It makes pretty strong sense to see biotech doing so well. The AI headlines haven’t even touched that sector yet, and a rate cut in December is looking more like a lock now. Remember, a lot of these biotech companies live on debt, so lower rates are a real tailwind.
Despite my excitement around biotech and healthcare, I would actually prefer to see technology reemerge as the leader in the 1-week and 30-day spots soon. This would send a strong signal that stocks have bottomed.
Talk soon,
Gianni Di Poce
