Patience Paying Off

The indices are still green but well off their opening high as I write this, forcing us to consider, yet again, just how priced in the "good news" is for the near-term. If we suffer a deep red close today, headed into the weekend of a new month, that would perhaps be more of a blinking red light than any of the previously mild fades we have seen in recent weeks. 

First things first, though, as bulls could easily step back in to defend dips as they have done admirably since Christmas. Both biotechnology ETFs (IBB for the large caps and XBI for the little guys), as well as healthcare (XLV) are outpacing most or all other sectors this morning. What makes this strength so impressive is that the BMY-for-CELG deal hit a roadblock this week, and yet it did not outweigh the massive ONCE buyout we saw to kick off the week. 

Indeed, biotech bulls needed to be a patient bunch for quarters on end, as the sector topped out back in 2015, corrected harshly, and then went quiet with the dreaded "dead money" period before waking up in 2017 and most of 2018. The late-2018 took them down hard again, but there signs of relative strength we noted back then which seem to be coming to fruition now.

With this in mind, we look for growth leaders in the IBB XBI XLV ETFs. 

Veeva Systems is one of them, to be sure, sporting a well-defined resistance breakout throughout February, followed by a recent, mild, earnings shakeout. We have this one on watch back over $120 long for another push higher. The healthcare IT growth winner has the makings of continuing to be a leader, going forward.