Lots to Choose from at This Buffet

By now, we all know the trials and tribulations of VRX in the healthcare sector, complete with Bill Ackman ballyhoo and juicy media coverage. 

But beyond VRX, many other titans in the healthcare complex are under pressure, failing to sustain eve promising earnings bounces. MNK, for example, is now well below its recent earnings jump, and then some, looking to be on the verge of a major breakdown to compliment the weakness in biotechnology, to boot. 

Moreover, as we can see below on the HZNP daily chart, Horizon could easily do the same.

Note how Horizon has been lingering below its 200-day simple moving average (yellow line) since last September, with bounce attempts ultimately blunted. 

The major pharma is now at risk of another meaningful breakdown below $13, unraveling what had been a very steep multi-year uptrend previously. Around this time last year, for example, we played HZNP on the long side a few times for Members, but we did so full well knowing the stock was categorically not in the buy-and-hold phase, but rather the quick-hitting long phase before the steep trend likely hit the skids. 

Other healthcare plays are likely at risk this summer, too, which transcends VRX and the micro issues that firm faces.