U.S. equities are under pressure on Tuesday morning, keeping the Dow Jones Industrial Average below its 50-day moving average. Geopolitics and the lack of legislative action on tax reform and healthcare fixes remain a concern, but the main catalyst for the decline is the increasing flow of Q1 earnings results and an ongoing batch of weak economic data.
Healthcare stocks in particular are under pressure after a major sector component wet the bed, so to speak, with a revenue miss.
As a result, the Health Care Select SPDR (NYSEARCA:XLV) exchange-traded fund of healthcare stocks has collapsed below both its 50-day moving average and lower Bollinger Band, it’s first confirmed sector downtrend since last August. This comes after the XLV bonked its head, once again, on overhead resistance going back to 2015. The three-year-long sideways crawl — bounded by $76 on the high side and $62 on the low side — capped a massive 300%-plus rally out of the 2009 low.
All of that is a long way of saying that healthcare stocks broadly are starting to crack, and a number of blue-chip names are in that number. Here are four stocks in the sector that are on shaky legs. Consider shorting them, via options or straight-up, or even selling them outright.