Update-1 Jan 5, 2021 Nice Reversal to the Upside! Energy stocks rock!
NASDAQ moved up 1% and the S&P followed up 0.71% both near highs of the day. Energy stocks were a big gainer with the XLE up 4.5% and the metals ETF up 5%(XME) a new trend in materials and energy strength.It is too early to extrapolate from these gains until the election cycle runs its course. But MOMENTUM was clearly back today.Oil prices firmed at the $50 handle.Biotech stocks gained broadly with vaccines still in focus but MRNA was down 2.28%, INO struggled down 4.83% to $9.26 while NVAX recovered up 2.89% to $116.24.
Diagnostic stocks were strong: ABT, CODX, GNMK, HOLX, OSUR, QDEL. The XBI was flat at $140 handle.
We will pick up more coverage tomorrow and through next week as we follow the J.P.Morgan Conference (Virtual).
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Healthcare Portfolio Summary 2020: First posted on 1025/20
We developed this healthcare portfolio on 10/27 including broad diversification with ETFs with an overweight in large cap biopharma and providers (UNH). Te COVID pandemic was a major factor in these stocks. Some key takeaways:
- We always recommended the XBI for trading and bull runs and you can see its up 48%.
- To play biotech small caps the IWM and XBI is the trade.
- The IBB is probably a better portfolio pick than a lag cap biopharma see MRK down 10%.
- Most of these ETFs ran up in Q4 2020.
|Stock/ETF||Ticker||Price||Weight||P 11/13||P 11/27||%Perf||Price||QTR||2020 Yr|
|10/25||1 mo.||12/31||%||% Perf|
|iShares NAZ Bio||IBB||136||25||141.06||143.22||2.27||151.5||11.9||25.7|
|iShares Russell 2k||IWM||163||10||173.51||184.37||16.56||196.4||30.9||18.3|
|SPDR S&P Bio||XBI||117||5||125.04||131.46||11.95||140.8||26.3||48|