The Medical Device Sector is alive

It's Alive!  Again.

The story of how a market long in the tooth can hide opportunities that are near and dear to your shoulder, knees and hips.

The Medical Device makers, have been resilient during the recent pullback in the market, and have been outperforming the S&P 500 since early November! There is an Exchange traded Fund that owns most of the high quality players in this space that makes an excellent proxy for this Industry Group.

INVESTMENT OBJECTIVE

The iShares Dow Jones U.S. Medical Dev. IHI seeks to track the investment results of an index composed of U.S. equities in the medical devices sector.

Why IHI?

1. Exposure to U.S. companies that manufacture and distribute medical devices.
2. Targeted access to domestic medical device stocks.
3. Use to express a sector view.

Here is a chart showing some positive bullish price action from a technical perspective.

On a pure price action bases, so far there has been no damage to the uptrend from our perspective. The lower chart plots the action of this group vs. the S&P 500. You can see, both are moving up left to right, with the lower RS chart breaking out of a Bullish Triangle.

We love this group, as it has held up fine, especially over the last 2 weeks of this year.

When you open up the the hood to see what is inside, you will see one of the leaders has been Boston Scientific Corporation BSX

Lets take look!

Nice relative strength in this industry group and great relative strength in Boston Scientific.

This was originally shared on Captain John's Charts.  Subscribe to receive more

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