The Sword of Damocles is striking down, with extreme force, upon the heads of overzealous biotech investors. Why just the other day, a certain someone was masterbating to ESPR, trading NORTH OF $110.
Let’s go to the video tape! You’re gonna want to skip to 1:45 for the magic.
Today there are dozens of biotech stocks down more than 5%. It’s an absolute bloodbath–one that was desperately needed. As this sector unwinds, you will be tempted to buy dips. I would advise you to exhibit a modicum of patience and at least wait for the margin liquidations to kick in, which should occur about 3 days from now.
I am not immune to this rout, as I find myself down 1.5% for the session. For a person of ‘extreme caliber’ and penchant for the highest of beta, this is a stroll in the park for me. At this moment in time, I find myself diversified and surprisingly prepared for the death squads that will most assuredly visit the lot of you this week.
I’ve been out all day and haven’t checked my emails or Twitter feed yet. I am sure the Debbie Downers are screaming REDRUM at the top of their black lungs, declaring the market has topped out and all is lost. This is idiot talk. Markets go up and then they go down. We’ve had a really good run in a variety of sectors. The flat YTD broader indices doesn’t tell the whole picture.
Nevertheless, I think you go out and buy quality on dips, free cash flow generating machines, like JNS, MUSA, MD, BABA and SBNY, while avoiding the hot money sectors like biotech and solar. Let The PPT be your guide as to when we are oversold. We’re not there yet.
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BTW $TZA hit ppt OS yesterday afternoon, so there’s that.
Thanks to the Fly warning I closed my XBI yesterday @ 232. FIG, most definitely.
Lots of shopping money.
Flat. Top. Appropriate for today.
https://www.youtube.com/watch?v=WXVrOkBYLfU
How to Cut a Flat Top Haircut
You know that 15 cent stock I bought with my $100 brokerage account? Well instead of going to $10 WHICH IT WAS SUPPOSED TO it went to 9 cents which means my 4 figure account ($6666.67) is now a 2 figure account.
There is clearly a disclaimer at the end of that video that says that what you just saw on your TeeVee was only a cartoon and make believe and was not to be taken seriously. Therefore the show will return tomorrow urging you to short oil as its going to 5 dollars and stocks have memory.
Le Fly, how many days out are we from the final release of PPT 2.0 ?
Within 30 days.
The hot money is flowing into quality South American banks like AVAL and CIB.
Vamos.
“The Nasdaq is still just four days removed from a 15-year high so it is still a little premature for the bears to break out the honey.”
It’s like, (important-person imitation) Look at that thing, it’s so high, 15 yr high i tell you, Things are great, Must mean things are great. Right Kowalski? (shoulder nudge)
The once or twice-removed generation may actually be smart enough to realize, (captain obvious) high stocks rising stocks recordhigh stocks does not mean h e a l t h y
Decent dump across the board today. Energy survived but everything else did not. Senor Fly called for blood and it looks like he will get it.
Crude shorts getting Bergdahled overnight. Funny how that happens.