Can the Dow Theory be applied to Sectors? Answer: YES (II).

 Healthcare sector (XLV)

Can the Dow Theory for the 21^stCentury (DT21C) be successfully applied to the healthcare sector (XLV)? Yes, and it works great. In a future post, I will explain why the Dow Theory works with sectors and what sectors stand to profit most from the Dow Theory. Today, I applied the Dow Theory to XLV (Health Care Select Sector SPDR ETF). The results are amazing:

1) The Dow Theory increased total profits by 51.46%

2) Maximum drawdown was cut by 40.14%. On a close trade basis, it was cut by 80.63% 

If you want to see the outperformance when applied to XRT (retail sector ETF):

http://www.dowtheoryinvestment.com/2022/06/can-dow-theory-be-applied-to-sectors.html

 More to follow soon.

Sincerely,

Manuel Blay

Editor of thedowtheory.com