Carter Worth Sees Trouble Ahead For Health Care SPDR

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Carter Worth of Cornerstone Macro spoke on CNBC's "Fast Money" about Health Care SPDR XLV. He analyzed the stock from a technical standpoint and concluded that it's overbought.

Worth showed that it has outperformed the S&P 500 and other sectors in two-, three- and five-month periods. He added that there have only been five instances when Health Care SPDR was up for six months in a row and up 15 percent or more in that period. This is the fifth time and the probability for that is 0.07 percent, explained Worth, and added that after such a rally the stock has traded lower in the past.

Health Care SPDR is trading around 10 percent above its 150-day moving average and every time it has done that in the past, there was a pullback, said Worth. He would take profits or sell calls in the name.

Posted In: Sector ETFsTechnicalsMediaTrading IdeasETFsCarter WorthCNBCFast Money
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