Biotech May Be Bottoming Here

By bottoming, I mean not tanking by 15% in a single day. Truth be told, the Grande Society of Exodus has declared XBI to be OVERSOLD today. The track record is next to flawless. As such, in exactly 3 days henceforth, the biotech sector will be appreciably higher.

My long positions are XON, JAZZ, ICPT and SGEN.

GILD is major pharma and is my second largest position.

Lastly, biotech always fucks itself during the month’s of late summer, leading up to a sharp snap-back rally during the fall.

My man Ragin Cajun is depressed because of this tape. He’s just about the most optimistic, cheerful person, you’ll ever meet. There are some people that you meet and feel immediately impressed by their character. RC is one of them. I feel that way about everyone on the iBC team, even that devil who I placed in hell: Bluestar. We have a great nucleus of traders/bloggers here, working tirelessly to provide you, the reader, with up to the minute news and information.

SHAME ON ALL OF YOU OLD SCHOOL IBC’ers for not supporting the site at a time when it needs you most. I will remember this until my last breath, which will be a long, long time from now, being that I am immortal. Many years from now, iBankCoin will be the largest finance site in America, having risen up from the ashes of perfidy to dispatch all former supporters/faux fans to hell.

“The Fly” will be here forever. The internet is infinite and the content delivered here will always be available to society, as a whole, rest assured.

What we’re enduring now is simply consolidation. Markets have risen in recent weeks and now we’re digesting gains, while driving biotech stocks into crucifixes. I have a mind for this sort of tape, one that demoralizes mortal men, breaks them down into tears, sending them back home with hat in hand.

Very soon, the digestion of the gains will be complete and the next leg higher shall commence.

I am long SLCA anyways. I added to my fucking position, ahead of tomorrow’s OPEC meeting. At some point in the not-so-distant-future, those motherfuckers are gonna be visited by space ships and those space ships are gonna send out space aliens who will then tell them “cut production, else we’ll vaporize your continent, unleash dinosaurs on your dumb asses.”

When that surprise cut happens, you will regret the day you were born, leading up to the day you decided to sell short crude.

In it to win, or die trying.

I also added to my SHAK position.

Any interest or no?

Just checking.

Fucking fuckers.

Does anyone else feel this way too? Those little fuckers are out there, getting their stock bid up, all the while the market is being driven into the dirt. Fellow tech names, like MU, are humiliated on a daily basis, and the spoiled brats at SNDK want an “all cash” offer near its all-time high?

How about no? How about, instead of WDC buying you, they buy nothing. Your shares sink into a fucking tar pit, with the rest of my positions, and you sit there for the next 3-5 years, then go bankrupt?

How about that?

The NASDAQS are getting crushed. Biotech and tech, hammered. This was supposed to be the great breakout week. Instead, we got more of the same bullshit.

Consumer Reports are electrocuting TSLA shareholders. Hillary Clinton is upset because there is one industry (biotech) left in the union that hasn’t ruined shareholders, so she’s writing letters to the fucking FDA/FTC. And, gold and silver are rallying, end of days style.

Everything is just peachy.

$DB is out with a note, basically telling people to stop reading Zerohedge and bugging the fuck out by selling good stocks in a good economy.

In my view, there is a big disconnect between the current narrative in both equity and rates markets and the actual economic data. This economy is stronger than its reputation and for some reason many investors want to hold onto the 2009 story of “the economy is not good”. We are likely to reach full capacity over the coming 12 months and that is why Yellen, Fischer, and Dudley continue to talk about liftoff in 2015.

There are dark forces out there, spoiling the mood for everyone else. It reminds me of this book I am reading now, which is the single best investment book of all-time: 28 Years in Wall St. In it, the venerable Henry Clews discusses the life of a Charles F. Woerishoffer, who was the bear of the late 19th century. Like Chanos or the fuckers at Citron, he has a powerful effect on the stocks he targeted and brought about a somber mood in the market. In effect, he and his ilk purported the idea that there was zero value in all corporations, especially when it suited them for profit. He made a fortune on the short side, but died at the young age of 43–likely due to Satan calling him back to hell for a little R &R.

It’s always easier to destroy and believe all is lost. Perhaps the Nazis at DB are right and things aren’t that fucked. Hence, there is a legitimate cause for optimism, aside from the prospects for MOAR QE.

Certain factions of the GOP want to destroy the country, in order to save it. Treasury Secretary Lew is warning markets that we need to raise the debt ceiling by November 3rd, or else.

Or else what, some of you new traders ponder? How about this?

In finance and investing, Black Monday 2011 refers to August 8, 2011, when US and global stock markets crashed[1] following the Friday night credit rating downgrade by Standard and Poor’s of the United States sovereign debt from AAA, or “risk free”, to AA+.[2] It was the first time in history the United States was downgraded.[3] Moody’s issued a report during morning trading which said their AAA rating of U.S. credit was in jeopardy, this after issuing a negative outlook in the previous week.[4]

By market close, the Dow Jones Industrial Average lost 634.76 points (-5.55%) to close at 10,809.85, making it the 6th largest drop of the index in history.[5] Black Monday 2011 followed just one trading day behind the 10th largest drop of the Dow Jones Index, a 512.76 (-4.31%) drop on August 4, 2011.

The last time we tried to purposely default on our obligations, our credit rating was cut and our markets literally crashed.

Bear in mind, on paper, none of this should happen. It’d be retarded if it did, since it’s entirely self inflicted. But, there are morons amongst us, men clad in the roughest burlap ever, who have designs to fuck America, in order to save her.

Since Wall St tend to have the attention span of a gnat and could only focus on “right fucking now”, I thought I’d remind you of what’s looming around the bend.

Futs soft, Europe lower, gold flat, oil higher, dollar lower

Higher
Earnings: TACO +13.6% (must be all them illegals), TTS +10.7%, SONC +5.7%, IHG +5.5%, GIG +4.3%, HSTM +3.7%, FLEX +3.1%, CE +1.6%, VZ +1.6%, SAP +1.5%, VLRS +0.8%, TRV +0.6%

TMH +21.9% (AmSurg (AMSG) confirms proposal to acquire TeamHealth for $71.47/share, or ~$7.8 bln), SNDK +8.7% (WDC buyout offer rumors)), YUM +6% (to split into two disgusting companies)

Miners are the shit this morning: AU +3.1%, IAG +2.1%, GOLD +2%, ABX +1.6%, GDX +1.4%, GG +1.3%, SLW +1.1%

ERII +135% (signed a 15 yr deal with $SLB), ONE +42.5% (sold its Campus Labs data analytics business to Leeds Equity Partners, for $91 mln in cash), CRBP +34.1% (FDA nonsense), RXII +10.8% (drugs are good), KITE +3.5% (some bullshit deal), ATRA +1.9% (more FDA shit), SKX +1.7% (mystery)

Analyst jargon: RCPI +8.4% (initiated with a crack at Maxim Group; tgt $4), WTW +6.1% (upgraded to Oprah Fat from Underweight at Barclays), TSEM +5.1% (initiated with a Heroin at Drexel Hamilton), RESN +3.1% (initiated with a Cocaine at Drexel Hamilton), BLUE +2.3% (initiated with a Doesn’t Suck at Oppenheimer; $162 tgt), GOLD +2% (upgraded to Cool kids from Nerd at Deutsche Bank), CPE +1.7% (initiated with a God Like Status at Canaccord Genuity), ADRO +0.7% (initiated with an H.A.M. at Oppenheimer), PFE +0.7% (upgraded to Real Talk from Market Perform at Cowen)

Lower
Shameful earnings: RMBS -16.5%, HOG -8.6%, HXL -8.3%, VAR -5.7%, IBM -4.4%, IEX -2.2%, WIBC -1.4%, WWW -1.2%, ETN -1.1%, SIX -0.8%, ELS -0.6%, LMT -0.5%

WDC -1.9% (Bloomberg reporting co is in discussion to waste lots of money on SNDK)

Select oil/gas related names showing early weakness: TOT -1.2%, BP -1%, RDS.A -0.8%

NEOS -13.7% (FDA hates them), ZGNX -7.4% (FDA stuff), MSB -4.9% (somehow CLF is fucking them), SGY -1.4% (shelf life)

Analyst nonsense: ENPH -7.2% (downgraded to Complete Shit from Hold at Deutsche Bank), AZN -1.7% (downgraded to Whorish Bad at Credit Suisse), VRX -2.2% (downgraded to Better off Dead from Sector Outperform at CIBC), CALM -1.1% (downgraded to Egg Farts from Overweight at a boutique firm), TS -0.8% (downgraded to Switzerland from Germany at Citigroup), DO -0.8% (initiated with a Worth Nothing at Citigroup), PH -0.7% (downgraded to Meh from Buy at Citigroup)

So much for state backed security.

Sinosteel Co. will delay an interest payment due Tuesday on 2 billion yuan ($314.5 million) of 5.3 percent notes that mature in 2017, according to a statement on Chinabond’s website Monday. The firm delayed payment as it plans to back the securities with stock of its unit Sinosteel Engineering & Technology Co., and that may affect issues related to interest payment, it said without elaborating. The failure to pay interest on time constitutes a default, according to Industrial Securities Co., Haitong Securities Co. and China Merchants Securities Co

Sinosteel has more than 100 billion yuan in debt. This was somewhat expected. Nevertheless, it highlights an inportant point that nothing in China is sacred, aside from plastic rice and BIDU, which is why I am long.

On that topic, nothing is more important than search for the development of a society, molding an entire country’s intellect, providing unprecedented access to information. What China did to Google (blocking them in favor of BIDU), other countries will copy. Google is only sacred within our borders. Once other tech companies start to lobby their host countries against GOOG, other BIDU’s and YNDX’s will materalize.

Sovereignty and nationalism is the ultimate moat.

People are making a big deal about Saudi Arabia tapping the debt markets for $32 billion big ones today. Before we all start feeling bad for House Saud, let’s remember that the greatest transfer of wealth has just occurred, from west to east, courtesy of the fucktards in our State Dept. who decided that the best course of action to tackle the terrorist problem was middle east regime change.

They (House Saud) were the morons who decided to attempt to break the backs of the good oil men in the Bakken Shale, by refusing–repeatedly–to cut production. It truly was a sight to behold, coming from an organization that was hell bent on higher prices…always. Then, all of a sudden, amidst a 30% drop in crude, they refused to cut production in favor of retaining market share.

Morons.

Now they have 326 million barrels of crude in reserve, the most since 2002. Economic growth has collapsed from +10% to +3%. They’re delaying payments to contractors, and are entirely fucked, in the streets, without shoes.

And this:

“It’s hard to hold back from boosting spending when oil is on the rise, but very hard to cut when oil prices fall,” Simon Williams, chief economist for central and eastern Europe, the Middle East and North Africa at HSBC Holdings Plc, said in e-mailed comments. “Cuts are coming — the budget deficit is too large to ignore and pretend it’s business as usual.”

Saudi Arabia will cut production, sometime within the next 6 months. Oil stocks will fucking surge like beasts out of hell, or bats out of a cave, then everyone will fade oil–making a mockery of the little men who walk around with circles on their heads.

There is an OPEC meeting Wednesday. No one expects them to cut production, which is why it’s such a great trade. Oil stocks are rangebound anyway. I love long oil ahead of any OPEC meeting for the next six months.

Fucking monarchy in the 21st century. Give me a break.

Top oil pick: SLCA