Welcome back for another Top Down Trade of the Week.
This is a classic leadership scan.
We start with the best sectors, then drill into the subgroups. We pick one, and then take a look at the top stocks in it.
This week’s standout is Healthcare, which jumped six spots in our sector rankings.
Even though it’s been one of the weakest performers this year, rotation into the space would make sense as investors look for fresh opportunities.
Here’s a look at our overall industry rankings, where Life Sciences Tools and Services climbed into the 8th spot.
This is a diverse group, but its move up the ranks this week had everything to do with the rally in Biotech.
I’ve been stressing the opportunity in this forgotten sector, and recently highlighted some of our favorite biotech stocks as they start to turn higher.
Biotechs are a high-beta, bull market leadership group. When money flows into these names, it is a classic sign of healthy risk appetite from the market.
Below are the Top 10 names in the Life Sciences Tools and Services subsector, ranked by relative strength.
This week’s top pick is Adaptive Biotechnologies $ADPT:
ADPT is on the verge of completing a textbook bearish-to-bullish reversal.
We like it long above the all-time high VWAP near 12, with a target of 29.
Our team at ASC is constantly running these kinds of top-down scans. If you want access to our research and the trade ideas that come out of it, join us today—risk free.
