Health-care stocks have found new life as markets crater.
Mark Newton, technical analyst at Newton Advisors, said Tuesday the overall health-care trade still looks like a solid play.
“We haven’t seen any signs of sufficient deterioration that would make you want to avoid health care at this point so it’s still an area where people want to rotate out of technology,” Newton said on CNBC’s “Trading Nation.”
The health care sector is one of the best performers over the past month and the top mover of the year. The XLV health care ETF is up 1 percent over the past three months, while the S&P 500 has tumbled nearly 6 percent.
“One stock in particular I like is Eli Lilly,” said Newton. “Near-term we’re seeing a very decent pattern here at work. You’ve seen this little cup-and-handle pattern which recently just broke out last week.”
In technical analysis, a…
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