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Weakness in the Drug Industry
By: InVivo Analytics   Friday, June 20, 2008 6:29 PM
Symbols: AET, CVH, HUM, UNH, WLP

(WLP)

19-wlp1.gif
Daily bar chart with 50- and 200-day moving averages

19-wlp2.gif
Daily bar chart with Swing Line applied

19-wlp3.gif
Daily bar chart with InVivo.RMI.Stops and InVivo.RMI.Histogram applied

Given the recent news, we will be looking for analysts to adjust earnings and ratings in healthcare stocks as the companies are already doing it themselves. Since nearly 46% of the Health Care SPDR (XLV) is composed of major drug companies while insurance (accident & health) accounts for only 8%, the performance of major drug companies will have a bigger affect on XLV.

 


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