Diabetes and Profits: Two Peas in a PODD

The indices are grinding up today, with the small caps noticeably leading again. Adding to the bull case near-term would be the outperformance in those small caps in the Russell, on top of the impressive individual price action within many hot corners of the market. 

Medical devices remain as strong as any group. We continue to profile the mid-cap ones for Members, looking to see if they follow the big guns in the group (BSX ISRG) higher. 

One such name is PODD, the diabetes, insulin delivery play. 

After its recent earnings surge, the stock is bull-flagging "high and tight" on its daily chart. 

But, beyond that, the monthly look, below, dating back to 2009 illustrates that Insulet Corporation may just now be breaking out from the massive consolidation since its peak in the first quarter of 2014. That is quite a good while to go without making new highs. 

And after the latest rally off EPS, bears are now on the run as PODD threatens to emerge for a new leg higher. We know diabetes remains an epidemic, so it not hard to see the bull case. Now it just comes down to the technical supporting the thesis that diabetes and profits are, sadly, two peas in a PODD.

A break and hold over $50 would be ideal. In the meantime, bulls are well on their way.