Don Dion, an important ETF commentator at thestreet.com, had a great piece (subscription required) with the same basic hypothesis that we have been advancing here for some time. He points out that the same healthcare ETFs that dipped when Obama was elected are making gains after the GOP won the Virginia and New Jersey governorships last night.

The iShares Dow Jones US Health Care (IHF) and PowerShares Dynamic Healthcare (PTJ) are making the most significant gains in the sector, but almost all ETFs are making smaller gains. These include Vanguard Health Care ETF (VHT), Health Care SPDR (XLV), iShares Dow Jones US Pharm Indx (IHE), iShares Dow Jones US Medical Dev (IHI), iShares Dow Jones US Healthcare (IYH), PowerShares Dynamic Heathcare Sec (PTH), and PowerShares Dynamic Pharmaceuticals (PJP). We expect these trends to continue if healthcare looks increasingly unlikely.