While October’s troubles are still working their way through the markets, one thing that has managed to brighten the disposition of some traders is the positive earnings trend among some of the market’s traditional leaders. Banks and other financials posted healthy numbers, and even Netflix surprised everyone with a huge per share revenue beat and raised annual forecast.

However, due to the rising yield curve and persistent geopolitical risks, traders are still skeptical of a continued uptrend in the performance sectors. But, looking closely at a few pharmaceutical names might well change that, as evidenced by the sharp uptick in industry interest if one looks at the charts for the  Direxion Daily Pharmaceutical & Medical Bull 3X Shares ETF (PILL) and Direxion Daily Healthcare Bull 3X Shares ETF (CURE).

PILL vs. Dynamic Pharmaceutical Index

Data Range: 9/22/2018 – 10/23/2018. Source: Bloomberg. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance quoted. For standardized performance and the most recent month-end performance, click here.

Data Range: 9/22/2018 – 10/23/2018. Source: Bloomberg. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance quoted. For standardized performance and the most recent month-end performance, click here.

Clearly, pharma names were not immune from the early October rout. However, the sharp spike in both charts mid-way through the month came following stellar early reports from Johnson & Johnson and UnitedHealth Group Inc. as well a solid beats and positive guidance from Abbott Laboratories.

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