Biotech stocks continue to melt down. I know, broken record, but like a car wreck, it's hard not to look.
Warning: The following chart contains violent images not suitable for all investors.
Biotech stocks are no longer outperforming the broader market.
IBB data by YCharts
The selling in March has been unstoppable.
Heres some interesting Morgan Stanley research from yesterday (March 27) which provides some insight into the biotech sector weakness.
Our desk has been getting a lot of questions regarding inflows/outflows in Healthcare & Biotech ETFs. To put things into perspective: Healthcare ETFs saw $5 billion of inflows through March 19th. Since then, they've seen $1 billion of outflows in the sector (20% of YTD inflows.) Biotech ETFs in particular saw $1.3 billion inflows through March 19th and have had $380mm outflows over the past week (30% of YTD inflows.) US-listed ETFs have had $13 billion total inflows YTD. Through March 19th, about 40% of these inflows had been into health-care related ETFs.
As I mentioned earlier this week, Gilead Sciences (GILD - Get Report) is the bellwether biotech stock to watch. Where it goes, the sector goes, and right now, that's down. Gilead lost another 4% today on a weekly dip in Sovaldi script growth.
10/14/15 - 11:47 AM EDT
05/19/15 - 04:42 PM EDT
05/19/15 - 12:48 PM EDT
05/18/15 - 08:06 AM EDT
05/05/15 - 02:43 PM EDT
05/03/16 - 14:00 PM EDT
05/03/16 - 11:00 AM EDT
05/03/16 - 08:17 AM EDT
05/03/16 - 07:58 AM EDT
05/03/16 - 07:40 AM EDT
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Trifecta Stocks analyzes over 4,000 equities weekly to find the elite 1% of stocks that pass rigorous quantitative, fundamental and technical tests.
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
Chris Versace, using sophisticated stock screening and fundamental research, identifies potentially explosive small and mid-cap stocks.
Master swing trader Alan Farley uses his sophisticated software screens to review thousands of stocks each day for you, to find just the handful that meet his demanding criteria.