Last week’s upside breakout in the PowerShares QQQ Trust (QQQ) was impressive but the iShares Russell 2000 (IWM) just closed at marginal new highs. The Spyder Trust (SPY) also made a new marginal high but I doubt the breakout was strong enough to convince those who are bearish on the market. The Greek debt talks apparently stalled Monday, but the way these things work, that is not surprising. The EuroZone markets are a bit lower early Tuesday, but the S&P futures are trying to buck the trend ahead of Tuesday’s Empire State Manufacturing Index and the Housing Market Index. I have often expressed the importance of the long-term charts and the S&P 500’s completion of a major trading range in 2013 suggests that stocks could actually melt-up in early 2015. One of the my favorite sectors for the past few years has been healthcare, which broke out of a twelve year trading range in 2012 (see chart), which looks very similar to the breakout in the S&P 500. Healthcare has consistently outperformed the S&P 500 for the past three years, and so far in 2015, it has gained almost 1.4% more than the S&P 500. A look at the daily and weekly charts of the Sector Select Health Care (XLV) will explain why I have two new picks from this strong sector. The healthcare picks from last month are doing well and I will be looking to take more profits.
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