Healthcare stocks are breaking out on fundamental wins — accumulate Eli Lilly
Thesis
The healthcare sector is showing explosive, catalyst-driven growth that is completely detached from the volatility in tech and semiconductors. Eli Lilly just hit new highs thanks to Medicare inclusion for its GLP-1 drugs, representing a massive structural shift in its addressable market. Meanwhile, Moderna surged over 70% in a month following a unanimous FDA vote, showing that biotech sentiment can shift on a dime. Goldman Sachs highlights that broad capital spending is driving this bull market, and few sectors see as much direct capital deployment as pharmaceutical R&D and healthcare infrastructure. This combination of policy tailwinds and heavy investment makes healthcare a high-conviction long opportunity.
Strategy approach
Build a rule-based strategy that enters long LLY on D1 when the stock makes a new 20-day high following a positive FDA or Medicare policy announcement. Exit if the stock breaches its 50-day moving average or after a 60-day hold.