Healthcare Momentum Hunter

UNH
JNJ
LLY
9 assetslow risk1d

Buys healthcare stocks when they're gaining momentum, sells when momentum fades, keeps some cash safe.

byAmaltash Advisors LLC

Price

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The idea

Buys healthcare stocks when they're gaining momentum, sells when momentum fades, keeps some cash safe.

This strategy focuses exclusively on the healthcare sector — one of the most resilient corners of the stock market — and looks for moments when individual stocks and ETFs shift into positive momentum before taking a position. It trades names like UnitedHealth, Johnson & Johnson, Eli Lilly, AbbVie, Merck, Pfizer, and Thermo Fisher, alongside the broad healthcare ETF. The approach is straightforward: it only buys when a stock's momentum is pointing upward, and it steps aside when that momentum starts to fade. There's no chasing — the strategy waits patiently for confirmation before entering, and it doesn't hesitate to exit when conditions turn unfavorable. It trades long-only, meaning it profits when stocks rise and simply holds cash when they don't. A built-in cash sleeve using a short-term Treasury Bill ETF keeps a portion of the portfolio in a stable, low-risk holding at all times — so even in rough markets, not everything is exposed to swings. Individual positions also carry guardrails that can lock in gains or limit losses on a stock-by-stock basis. This strategy shines during sustained healthcare sector rallies and trending markets. It tends to sit out during choppy, directionless conditions where momentum signals flip frequently. It's best suited for investors who want focused sector exposure with a disciplined, rules-based approach to getting in and out.

Design

How it works

  1. Focuses only on healthcare sector stocks and ETFs

  2. Waits for upward momentum before buying any position

  3. Exits automatically when momentum weakens or profit/loss targets hit

  4. Always keeps some money in safe Treasury Bills

Conditions

Where it works, and where it doesn't

Every strategy is built for a particular kind of market. These are the conditions this one is designed around — and the ones it is not.

Built for

  • When healthcare stocks are climbing steadily over weeks or months
  • During broad market rallies where healthcare leads the way
  • In calm markets where price trends are clear and consistent
  • When sector rotation favors healthcare over other industries

Not built for

  • When healthcare stocks bounce around randomly with no clear direction
  • During sudden market crashes or panic selling in the sector
  • When momentum signals flip back and forth frequently (whipsaw)
  • In prolonged downturns where healthcare loses its defensive appeal

The Simulation Lab

Ten bad markets, before your money is in one.

Almost anything looks good in a rising market. That is not a test. So we put the strategies listed here through the same ten bad markets, and this one has been through them. They are stretches of real market history, with names and dates: the 2022 slump, the COVID crash, a year that went nowhere. We picked them before this strategy existed.

Two of them are below. Each one shows our drawing of what that market looked like, and the rules this strategy follows when a market like it turns up. None of this is a score. What actually happened to the strategy is in your dashboard, not on this page.

10bad markets, picked before this strategy existed
8 of 10can run on the real trading days of the time they name
2 of 10we model ourselves, and we mark them as modelled
26 Aug 2026when we last ran this strategy through them

When markets fall

The 2022 Slump

A full year of falling prices as interest rates shot up.

our model of the Nasdaq 100 around 2022ends about 33% below where it begana shape, not a scale · not this strategy

Index
Nasdaq 100
The real dates
3 Jan – 30 Dec 2022
What the index did
fell 33%
How we run it
Real trading days

A full year of lower highs as the Federal Reserve raised rates from near zero to over 4%. Four separate rallies of 10% or more along the way, every one of which failed.

The rules this strategy follows here

  1. 1
    What it holds

    9 companies.

  2. 2
    When it sells

    One of them drops 5% to 100% below the price it was bought at.

  3. 3
    What it does

    It sells that one. The rest carry on.

No overnight drops in this market.

When markets go nowhere

The Year That Went Nowhere

2015 swung up and down all year and finished where it started.

our model of the S&P 500 around 2015swings about 9% either way, and ends about 1% above where it begana shape, not a scale · not this strategy

Index
S&P 500
The real dates
2 Jan – 31 Dec 2015
What the index did
roughly flat
How we run it
Our model of it

A year that ended where it began, after swinging repeatedly in between — including a 12% drop in August when China devalued its currency, fully recovered by November.

The rules this strategy follows here

  1. 1
    What it holds

    9 companies.

  2. 2
    When it sells

    One of them drops 5% to 100% below the price it was bought at.

  3. 3
    What it does

    It sells that one. The rest carry on.

No overnight drops in this market.

A market that ends where it started still charges you for every trade made inside it. This is where the cost of trading adds up fastest. That is why it sits in the set right next to the crash.

When markets rise

The Bull Run of 2016–17

Two calm years when the market just kept climbing.

our model of the S&P 500 around 2016–17ends about 42% above where it begana shape, not a scale · not this strategy

Index
S&P 500
The real dates
4 Jan 2016 – 29 Dec 2017
What the index did
rose 30.8%

When markets fall

The COVID Crash

A third of the market’s value gone in a month — most of it overnight.

our model of the S&P 500 around Feb–Mar 2020falls about 34% at its worst, then ends about 14% below where it begana shape, not a scale · not this strategy

Index
S&P 500
The real dates
19 Feb – 23 Mar 2020
What the index did
fell 33.9%

Sign in to see how this strategy did in each one.

The results open in your dashboard, where we can explain what they mean for you. They are simulated results, so we never show them here.

Open the stress tests

trade.amaltash.com/marketplace/healthcare-momentum-hunter?tab=stress

All ten markets

  • The Bull Run of 2016–17When markets rise · modelled · shown above Tested
  • The 2020 Tech BoomWhen markets rise Tested
  • The 2022 SlumpWhen markets fall · shown above Tested
  • The COVID CrashWhen markets fall · shown above Tested
  • The Christmas 2018 ScareWhen markets fall Tested
  • The Year That Went NowhereWhen markets go nowhere · modelled · shown above Tested
  • The Wild Swings of Late 2022When markets go nowhere Tested
  • The Quiet YearWhen markets rise Tested
  • The Magnificent Seven YearWhen markets go nowhere Tested
  • When Tech Handed Over to OilWhen markets go nowhere Tested

These ten are the whole set. We picked them for the damage they did — the fastest crash on record, a year that went nowhere, a grind that punished every rally — not for how they make anything look.

8 of these 10 can run on the real trading days of the time they name. We model the other 2 — The Bull Run of 2016–17 and The Year That Went Nowhere. A strategy needs a stretch of history to warm up on before a test starts, and our price data does not go back far enough to give these that. So we built stand-ins that behave like those years, rather than replays of them. A modelled market is not a forecast, and it is not what would have happened. The shapes drawn above are our models of those markets — never this strategy — and they have no scale. The dates and index moves next to each one are the real figures for the period it is modelled on. Nothing on this page says how any strategy did in these tests.

Holdings

What it holds

A few of the 9 positions this strategy trades. Sign in to see the full basket and the weights behind it.

UNHJNJLLY

+ 6 more assets in this strategy

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Risk Disclosure: Trading in financial instruments involves substantial risk, including the possible loss of your entire investment, and may not be suitable for all investors. Prices can be affected by external factors such as financial, regulatory, or political events. Trading on margin or with leverage increases potential losses. Past performance is not indicative of future results.

Not Financial Advice: The information provided on this platform is for informational purposes only and does not constitute investment, financial, or trading advice. We do not recommend any particular trading strategy or instrument. Please conduct your own research and consult with a qualified financial advisor before making investment decisions.

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