Within the medical stock subsectors, pharmaceutical stocks (especially those misnamed "biotech") act extremely well, notably those focused on hepatology, nephrology, oncology and orphan drug diseases. Significantly, I have noticed the highest number of 13G filings I have ever observed, which I think speaks favorably about the perceived prospects for these companies. Separately, I have discussed at length my enthusiasm for Hepatitis C-related companies; I am also positive on several of the companies involved with NASH , another liver disease that is increasingly becoming noticed by Wall Street. I have been recommending Galectin Therapeutics (NASDAQ:GALT) for the past year and am also intrigued with GENFIT. While some have called the top for these stocks, and I would not be surprised by periodic corrections as experienced in 2013, I believe that the trend remains from the "lower left to the upper right".
Disclosure: I am long GILD, GALT, GNFTF.