Technicals – XHJ marches to its own heartbeat, the MACD is pointing up, while momentum is neutral and slow stochastics supportive.  The index has been trading sideways for a long time now – with the range tightening and volume tailing off. Wouldn’t be surprised to see this break – and on balance, the move should be higher.

Fundamentals – an aging demographic provides a great base to the sector.  Currency exposure through the market heavyweights can distort the picture at times but there is no doubting that the quality of some of the companies in the sector.  With the government likely to be handing out cash to whoever has their handout for the forseeable future – expect the healthcare sector to continue to shine.

Conclusion – The healthcare sector has the best of both worlds – it’s both a defensive and growth play.  Overweight (though watching my cholesterol).