Chunky Monday

Choppy Monday for the most part.  We found out Bill Ackman is paying lobbyists now to make his short work in $HLF.  We also watched a stock called $PLUG put on  over 100% in about six trading days. Fun times and there is always a hot story somewhere.

On Friday the biotechs took a shot a cross the bow, and at one point $REGN was down about 40 balloons. It since recovered and has held its 50 day moving average.

Today Greece went wild on feta cheese and olives, as we saw the National Bank of Greece ($NBG) rip through its 50 and 200 day moving averages like a hot knife through a lamb chop.

Folks blamed China for the early pullback today. The media always has to have a “reason”. How about we just hit all time highs again and we backed off? That’s my story and I’m sticking to it. So China seems to have been growing at 7.5% since the freaking Ming Dynasty. Ever think that maybe that’s just a little weird?  They cant do capitalism, and when the carnival leaves town they will be left with ghost towns and smog. For now though, we’ll keep pretending that they matter more than they should.

Evidently margin debt is kind of high so everyone is peeing themselves. Shorts use margin too….they have to.

I’m still smitten with biotech, and I seem to find winners through the fog of this pullback. If you are lucky enough to get the $IBB to pullback to the 50 day moving average, buy that dip, it will be your chance. Sell your Bitcoins, your gold, your fine art,  fine wine and be long. Dump those palm oil futures.  That is my tip of the day.

Long live the market.

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Joe Donohue

Joe is a full time trader with 25 years experience. He is a senior contributor and investor in Stocktwits and has been seen on CNN Money and quoted in Marketwatch, Forbes, Reuters, NY Times and Wall Street Journal.