Last month, we highlighted healthcare’s improvement and noted that it has been the strongest performer in Q4 of 2025. Like most sectors, healthcare is broad and includes multiple sub-groups. Understanding these underlying components can reveal areas of strength and provide insight into which sub-sectors are driving performance.

The biotechnology sector consists of companies that merge biology, science, and technology to develop products that advance health. On the Asset Class Group Scores page—which ranks ETF groups by average fund score—the biotechnology group currently holds fourth place overall and first among all sectors. Since bottoming in May, its average score has surged to 5.04. This sharp rise underscores the group’s tendency to generate strong momentum over short periods. In the NDW Group Matrix, which ranks 40 sub-sectors by relative strength, the NDW Biomedics group sits sixth overall, further confirming the group’s strength. Note that “Biomedics” and “Biotechnology” have slightly different definitions and constituents.

For those interested in gaining exposure in the sector, you could consider the State Street SPDR S&P Biotech ETF (XBI). The fund maintains a strong fund score of 5.75, with a strong score direction of 4.92, demonstrating the strong improvement within the last six months. When looking at XBI on a 1-point scale, the fund sits on 10 consecutive buy signals after completing a double top break at $124. In early September, XBI reversed back into Xs against the market. The weekly OBOS indicates that the fund is in slightly overbought territory, so wait for the 10-week trading band to normalize before considering. Initial support is at $118, with additional support at $114. Resistance can be seen at $125.

For those interested in stock-specific exposure, you could consider AbbVie Inc. (ABBV). Although ABBV pertains to the "Drugs" NDW Sector group, the business does exhibit some biotech qualities and the stock is a holding in XBI, thus serving as possible exposure into the sector. The 5 for 5’er shifted up from a 4 in May after moving back to a positive trend. The stock sits on 3 consecutive buy signals after breaking a spread triple top at $200 in August. Year-to-date, the stock is up over 25%, demonstrating its outperformance this year. Additionally, the stock offers an impressive yield of 3.10%. Long exposure can be made here. Initial support is at $212, with additional support at $190. Overhead resistance can be seen at $236 and $244.

As expected, the Fed cut rates by 25 basis points yesterday, but the 10-year US Treasury Yield Index (TNX) also returned to a buy signal and a positive trend on its default chart, possibly signaling the beginning of an uptrend in long-term yields, which would be detrimental to core US bonds.  That’s why we thought today would be an opportune time to update the check-a-month strategy which can be a useful tool for supplementing portfolio yield via high dividend equities.

The check-a-month strategy involves buying a group of high-yielding, quarterly-dividend-paying stocks with dividend payment dates spread across the quarter so that the client receives a dividend check(s) each month.

When building a check-a-month portfolio, it is essential to select not only high-yielding stocks but also stocks with a healthy technical picture to better stack the odds of future outperformance in your favor. After all, your client won't be impressed with their 3% yield if the market value of their portfolio drops by 15%. Looking only at dividend yield, we found that there are 125 stocks in the S&P 500 with a dividend yield of 3% or higher. However, when we narrow our search using a technical overlay, we are left with 28 stocks. A list of all the criteria we inputted in the Security Screener tool is below:

S&P 500 Universe

Price = >$10

Trend = Positive

Technical Attributes = 3+ 

Dividend Yield > 3%

You will find all 28 names in the table below categorized into three groups based on their usual dividend payment schedule.

Early Quarter Dividend Payout (January, April, July, October)

Mid-Quarter Dividend Payout (February, May, August, November)

Late Quarter Dividend Payout (March, June, September, December)

As expected, the Fed reduced the target for the fed funds rate by 25 basis points to 3.5 – 3.75% on Wednesday. The more important outcome from the meeting may be the updated statement of economic projections (SEP) released following the meeting. The SEP shows FOMC expectations for interest rates and the economy over the next two years. The SEP released yesterday showed little change from September’s projections; members’ projections for the level of the federal funds rate were the same as in September. In fact, the only major change was a ½ percent increase to the median projection for 2026 GDP.

The 3.4% projection for the Fed funds rate in 2026 implies roughly one 25 bps reduction to the fed funds rate next year from the current target. The upshot is that unless there is a significant change in employment or inflation there may not be much more easing over the short term. And, during his press conference following the meeting, Chair Powell made several comments implying that we could now be at or near the neutral rate.

Stocks initially reacted positively, as the S&P 500 finished the day up 0.7%, but opened Thursday down almost 1%. If the market was looking for further monetary easing as a catalyst to keep the risk-on momentum going, the latest projections could put a damper on sentiment.

That being said, there is potential cause for the market to discount Wednesday’s data – Powell’s term expires in May of next year, meaning that in roughly six months we will have a new Fed chair. President Trump has made no secret about his desire for lower interest rates and is likely to appoint a chair who will try to deliver additional rate cuts. So, while the projections from the current FOMC don’t imply much in the way of easing next year, things could look different with a new chair leading the committee next year.

At this point, there are no signs that US equities are weakening. In fact, as we’ve discussed over the last couple of weeks, participation has improved recently. But Wednesday’s SEP does introduce a new potential risk factor – that diminished prospects for further easing could dampen sentiment.

Daily Option Ideas for December 11, 2025