Weekend Update- PPH, WTIC, HUI, IYH

The Pharmaceutical Holders ETF (PPH)- Monthly chart
There is a sneaky underlying bid coming into the PPH. This month the PPH is up 4.02% at $72.360. I have suggested this ETF so that you can have an equity that lets you sleep at night. Ever since I have suggested the PPH, it has had a nice slow move up. In addition, it gives you exposure to some Dow stocks. On the monthly chart, the PPH has broken its downtrend line going back to the year 2000. The PPH continues to be in a bearish trend reversal on the Aroon indicator. Nevertheless, the PPO is starting to turn up as are stochastics. I would start looking towards this sector because there may some rotation going on as investors become more risk adverse and more defensive. I would look at Pfizer (PFE) and some large cap pharma's. Keep an eye on this sector because eventually there will be rotation out of commodities and into utilities and pharma's.

Oil -Light Crude-Continuous Contract (EOD)(WTIC) - Weekly Chart
The weekly chart of WTIC shows that Oil is in the process of forming a possible ascending triangle. Recently oil and energy stocks have front run the rise in Oil. Indicators and oscillators are bullish. I have nothing bad to say about oil and our energy stocks except that our stocks have reached their respective price targets. I have issued sell alerts on our energy stocks and I do not want to over stay out welcome in this sector. We are due for a pullback. Then we will buy back at the appropriate time. Furthermore, Oil has rallied along with the market. There is a rumor that the opposite is true, not this time.

The Gold Bugs Index - Amex (HUI)- Daily chart
The daily chart of the HUI shows that it has broken out of a sideways slim jim. It recently hit new 52 week highs, and it looks to go higher. The HUI is very strong. In addition, Spot Silver just broke out of it's ascending triangle. There are laggards in this sector that you just have to avoid, such as GSS. If you stick with the leaders and the front runners, such as NEM, GG, ABX, and GLG, you will be fine. There are no hints that a correction is about to start. Dump your precious metal laggards now and get into large caps. Again, the trend is bullish and the PPO continues to make new highs along with multi year/decade highs in price. Buy the dips.

Healthcare iShares (IYH) - Daily chart
On the daily chart you can see that the IYH is forming a nice cup and handle. This chart looks good. There are a lot of good looking ETF's out there. Today the IYH closed up 1.17% at $64.25. FYI if you like trading ETF's.

 

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