Today's top mover ETF in my universe is RXD, the Proshares UltraShort Healthcare Fund. I am curious, why is healtcare 10% more depressed than the market in general?
Hmm... Hasn't healthcare been in the news a lot lately? It seems to me that somebody is interested in monkeying around with it. In a quick check of the news, I see that COBRA is being provided to the unemployed, that should help healthcare industry earnings. Hmmm, the National Institute of Health got billions and billions in the stimulus package and we are doubling their usual cancer research funding, that should help earnings.
Oops, "Reforming the way doctors are paid will also eventually lower costs..." That sounds pretty broad-reaching and vague, it could inject a bunch of fear into the market. Ouch! Here we go: "The budget includes a controversial $1.1 billion measure for the federal government to get into the business of comparing medical treatments." That sounds like the government hopes to be more medically qualified then the medical professionals. That's definitely enough to send waves of fear into the markets.
SO, I guess FAS/FAZ may be be replaced by RXD, and its' mate RXL, in market volitility and savvy trader profitability. Be warned, the average trading volume is lower than I'd like, but, today's charts look to be tradable on the 15 minute and slower timeframes.