Healthcare looks wonderful

Healthcare had a wonderful rally after being pummelled for the past few weeks. It has nicely based along a support and is now on its way up. It is by no means a clear cut rally with most of the moving averages still in the negative zone. But hey, moving averages are always slow, that's why they are called moving averages. The next few days will determine if this mini upward push will materialize to a rally.

The Tides Reverses?

We are in an interesting period of time now with the market moving sideways. However, I have been noticing considerable strength upwards in the US market. We are having higher lows in a very tight sideways formation. This indicates that the sentiment is getting positive within pessimism. Of course, the rally is not very obvious now and there are still the middle east threats and inflation threats that will send the rally back on its knees again. Baring these 2 factor, we should see a nice rally once the US market breaks out of 1275. Currently at 1260.

As I always conclude: We buy when the market is fearful. The next few weeks will be interesting.

Attached is a technical analysis chart.