Stock Trends

The November rotation accelerates

Good morning,

This week’s Overtime report was on consumer staples, and the rotation (or momentum unwind) continues to be a big theme in this market. Healthcare has stolen the show this week, already up more than 4% through the first three days and now riding an eight-day win streak.

Today, we’re going to look at some of the top drivers of the move, as well as attractive long opportunities lower down the cap scale.

We’ll also review:

• Energy stocks bucking crude oil weakness

• Key support on cybersecurity names

• A few high beta names I still like

• Hot List updates

• and more!

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Healthcare: Strength at the top

Eli Lilly (14.3% weight) surges to new all-time high

Is this the greatest “not a top” reaction ever? After breaking 18-month support back in August, Eli Lilly has surged 61% over the past few months, breaking out to an all-time high this week. This is too tactically stretched to endorse chasing (RSI-14 of 82, 2nd best 3-month run in the history of the stock), but this base measures to $1,224.

Johnson & Johnson (8.5% weight) has a similar look

JNJ is up more than 4% this week after successfully restesting its 2022 highs. That level ($186) makes a nice tight stop for new longs.

ABBV (7.2%) breaks out yesterday

AbbVie broke out of a short-term downtrend line with a more than 3% gain yesterday. This stock is sitting on top of a year-long base and looks ready to run and potentially break out in relative terms.

UNH (5.4% weight) digging in at key support