Health Care industry
Monitor and predict the growth prospects and potential risks of the Health Care industry by examining the financial and macroeconomic factors affecting it and the latest Health Care news tracked by MacroVar. Sign Up Free to get notified instantly on the latest Health Care updates and get full access to MacroVar advanced analytics of Global Financial Markets, Economies and Financial Risk.
Click to explore the factors and the financial models used by MacroVar to analyze the Health Care industry trend, growth prospects and risks.
Health Care industry Markets
|US Health Care industry||US.HEALTH||1430.65||1||1||1.80924||71.132||0.87||3.57||5.41||0.13039|
|Europe Health Care industry||EU.HEALTH||1837.03||0||-0.25||-0.14769||53.9557||-0.93||2.84||9.94||-0.02347|
|STOXX Asia Pacific 600 Health Care||APAC.HEALTH||711.26||0||1||1.24169||51.4486||-2.43||-2.84||4.61||0.09673|
|Eastern Europe Health Care||EEU.HEALTH||171.95||1||1||1.49054||69.8324||-1.1||-0.32||-1.51||0.0758|
|US Health Care Credit Spreads||US.HEALTHCARE.CR||88.53||-1||-1||-1.11657||29.5573||1.68||6.59||0.76||-0.12731|
|Europe Health Care Credit Spreads||EU.HEALTH.CR||91.03||-0.5||-1||-0.98768||33.2681||-0.11||-4.27||-4.51||-0.04805|
Health Care industry News
Health Care industry Analysis
MacroVar monitors the performance, risk, trend and momentum of the Health Care industry by examining the stock and credit performance of major Health Care companies across the US, Europe, Eastern Europe and Asia Pacific. Health Care Stock performance is monitored by analyzing STOXX equity indices of major Health Care companies while Health Care credit performance is monitored by analyzing Markit iBoxx credit indices reflecting the performance of the Health Care high yield corporate bond market.
MacroVar also monitors fundamental indicators closely linked to the Health Care sector published monthly including analysis of sector specific PMI indicators, components of Manufacturing & Services PMI and Economic Sentiment Indicators analysis.
MacroVar also monitors other factors closely related to the Health Care industry like closely related financial markets or macroeconmic indicators.
MacroVar estimates the following signals:: Health Care momentum, Health Care trend, Health Care oscillator, Health Care RSI and Health Care returns.
Health Care industry Description
The Health Care sector includes the subsectors of Health Care Equipment
& Services and Pharmaceuticals
& Biotechnology.The sector of Health Care Equipment
& Services includes the subsectors of Health Care Providers, Medical Equipment and Medical Supplies.
The subsector of Health Care Providers includes Owners and operators of health maintenance organizations, hospitals, clinics, dentists, opticians, nursing homes, rehabilitation and retirement centers. Excludes veterinary services, which are classified under Specialized Consumer Services.
The subsector of Medical Equipment includes Manufacturers and distributors of medical devices such as MRI scanners, prosthetics, pacemakers, X-ray machines and other nondisposable medical devices.
The subsector of Medical Supplies includes companies engaged in the manufacturing and distribution of medical supplies used by health care providers and the general public. Includes makers of contact lenses, eyeglass lenses, bandages and other disposable medical supplies.
The sector of Pharmaceuticals & Biotechnology includes the subsectors of Biotechnology and Pharmaceuticals.
The subsector of Biotechnology includes companies engaged in research into and development of biological substances for the purposes of drug discovery and diagnostic development, and which derive the majority of their revenue from either the sale or licensing of these drugs and diagnostic tools.
The subsector of Pharmaceuticals includes companies engaged in the manufacturing and prescription or over-the-counter drugs, such as aspirin, cold remedies and birth control pills. Includes vaccine producers but excludes vitamin producers, which are classified under Food Products.
Health Care industry MomentumMomentum is used to capture moves in shorter timeframes than trends. Momentum is the relative change occurring in markets. Relative change is different to a trend. A long-term trend can be up but the short-term momentum of a specific market can be 0. If a market moves down and then moves up and then moves back down the net relative change in price is 0. That means momentum is 0. A short-term positive momentum, with a long-term downtrend results in markets with no momentum.
MacroVar Health Care momentum signal ranges from -100 to +100. The Health Care momentum signal is derived as the mean value from 4 calculations for the Health Care . The timeframes monitored are the following: 1 Day (1 trading day), 1 Week (5 trading days), 1 Month (20 trading days), 3 Months (60 trading days)
For each timeframe, the following calculations are performed: 1. Health Care return is calculated for the specific timeframe and 2. if the return calculated is higher than 0, signal value output is 1 else signal value is -1. Health Care momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when Health Care momentum signal moves from positive to negative value or vice-versa.
Health Care industry trendHealth Care trend signal ranges from -100 to +100. Health Care trend indicator is the mean value of the 8 calculations described below. The timeframes monitored are the following: 1-month (20 trading days), 3-months (60 trading days), 6-months (125 trading days), 1-year (250 trading days)
For each timeframe, the following calculations are performed: 1. Health Care Closing price vs Health Care moving average (MA) calculation: If Health Care is greater than Health Care MA value is +1, else -1, 2. Health Care Moving average slope calculation: if current Health Care moving average is higher than the previous MA, Health Care upward slope +1, else -1
Health Care trend model can be used as a trend strength indicator. Health Care trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when Health Care trend strength indicator moves from positive to negative value or vice-versa.
The most important trend indicator
The Health Care 52-week simple moving average and its slope are the most important indicators defining a market’s trend. Health Care is in an uptrend when Health Care price is higher than the 52-week moving average and the Health Care 52-week moving average has an upward slope. If fundamentals of the market have not changed and the moving average slope is still in uptrend, a price drop signifies a market correction and not a change of trend. Traders should watch oscillators like the Health Care oscillator and Health Care RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.
Health Care industry oscillatorThe Health Care oscillator estimated by MacroVar is the z-score of the currentHealth Care price versus Health Care 1-year simple moving average price. The formula for the Health Care oscillator is:
Health Care oscillator = (Current Price – 250 trading days Health Care simple moving average price) / (250 days Health Care price standard deviation)
Health Care oversold conditions
Health Care is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the Health Care is oversold it is often due for a rebound. Values of the Health Care oscillator lower than -2.5 signify oversold conditions. It must be noted that the Health Care oscillator must be analyzed ibn conjunction with the rest ofHealth Care quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the Health Care RSI.
Health Care overbought conditions
Health Care is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the Health Care is overbought it is often due for a correction. Values of the Health Care oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the Health Care quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the RSI.
Health Care RSI indicatorThe RSI indicator measures the speed and change of price movements. The RSI indicator oscillates between 0 and 100. RSI is a useful indicator during normal trending market conditions when an asset price oscillates around its trend value. During big moves and strong trends however, like short squeezes or price spikes RSI and other oscillators don’t work.
During normal trend market conditions and when Health Care is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. DuringHealth Care uptrend, RSI values of 40 to 50 signify oversold conditions before the uptrend is ready to resume. It is strongly not recommended to enter a position when the RSI is “overbought” and falling or vice versa.
Health Care industry returnsMacroVar calculates Health Care returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is:
Health Care returns = (Health Care Closing Price – Health Care Previous Price)/(Health Care Previous Price)