The Healthcare SPDR ETF (NYSE: XLV) is near a new high despite the seeming threat of profit losses ahead for the sector based on health care "reform."



Chart Courtesy of StockCharts.com

Either health care investors know something or those who are pushing the sector higher are getting the rally out of their system before whatever changes that are coming make their way into the system.

XLV is moving nicely higher, which suggests that investors are betting that whatever comes out of Congress will so watered down that it won't make much difference tocompany earnings. And if that's the case what do investors know?

It's hard to figure. But maybe it's that even this late in the game some senators are saying that they won't vote for the plan. Or maybe it's the thought that some 30 million new paying customers will be added to the potential profit rolls.

If it's the latter, then the price increases that the pharmaceutical companies have put in place, as well as the way that drug stores have passed them through to customers, even on generic drugs, signal what's likely to be in the future.

If that's the bottom line, then we can see where the new highs on XLV have come from, the expectations for even more profits ahead as more people pay even higher prices for prescription medicines and likely even for other services.

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