In a review of the exchange traded and closed end funds, none have broken out in the past week but plenty are beginning to break down following the recent market meltdown. With the next US administration not expected to be so kind to big pharma and healthcare it’s not a total surprise that those sectors of the market have begun to break down. Although big pharma and healthcare are a bit oversold currently, there should remain some nice short opportunities in these sectors over the next several months. Both the Ishares Healthcare ETF (IYH) and the Pharmaceuticals Holders ETF (PPH) have broken through key support levels of their upward trend lines and 200 day moving averages. A bit of a bounce from here would provide an ideal short entry.
The last chart shows the breakdown in retail with the Retail Holders ETF (RTH). The consumer can’t possibly be as strong as in the past with the housing situation, so it’s no wonder that retail is breaking down here. Retail is one area i’ll be looking to find short opportunities in over the next year or two.