Taking the Holistic Approach to the Health and Wellness Sector

Back on July 8th in a video inside this blog post, I noted that quite a few firms related to the health, nutrition, and wellness sector were showing relative, if not outright absolute, strength to the still-gappy-at-the-time broad market. In essence, firms such as HAIN and SMBL were out in front of the rest of the market before it too eventually broke higher. Fittingly, perhaps, those stocks lagged last week’s powerful thrust to fresh multi-year highs on the major averages.

On its face, a casual trader might dismiss these stocks as being “laggards” not worth of their time, and certainly not worthy of a place on their watchlists. That kind of mentality, however, probably kept those same traders either sidelined, unnecessarily fearful, or short since August. The better approach is to view these charts holistically, acknowledging that just as outperformers sprint well ahead of the pack, they can also rest while the rest of the herd tries to catch up to them.

As such, after a series of mild consolidations, the following health and wellness plays are set up to break higher on strength, once again.

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