$xlv

Pullback

Biotech: buy the dip?

Short answer: probably not. The long answer is more instructive, so let's get started. Context matters, but what does that mean? What is context? In this case, the longer-term relative performance of the broad healthcare sector gives us some insight. The following chart, which I published in my

Chart of the Day

Reading sector relative strength

[dc]R[/dc]elative strength is an important trading concept, and there are a lot of ways to define, monitor, and trade these relationships. Looking at the sector relative strength within the US stock market gives a deeper understanding of money flows and psychological support for a bigger rally. One