TIM $14,301 (up $161 on the day)

Short 100 Shares Solar Fun (Nasdaq: SOLF) at $24.70

This morning, I surprisingly awoke before the market opened, mainly because the University of Arizona was not the party school I expected it to be—at least not during finals week. Oh well, college parties don’t compare to fun stocks like these anyway:

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SOLF —I’ve been stalking this stock for the past few days, but today’s price action meant I was a stalker no longer—today, I was a predator. The extreme daily trading volume of 20+ million shares told me the run would soon end (these runs like to go out with a bang). Sure enough, volume spiked again today and the stock was strong in the morning. I wanted to short in the $30s, but I told myself to wait until the afternoon (due to the action being much tamer)—of course, I felt I had to short when the stock cracked nearly $3 before 11am and I began imagining the stock collapsing below the all important $25 mark without me (this point was yesterday afternoon’s low so it would act as support today—as I noted last night). I gave in to my fear and shorted 100 shares at $28.74, just as the stock began bouncing (if slightly) for nearly an hour. After a failed bounce of nearly $1, the stock quickly tanked $2+ and I saw my opportunity to get out of this pathetic excuse for a trade. I bought to cover at $27.78, mainly because I should never have entered in the first place. Still, a nice $85ish profit, even if it was a stupid and dangerous trade. Wish I could say I got burned for a loss as that would’ve been a better lesson for all.

Later in the day, I knew I couldn’t use up another one of my precious day trades so I was determined to wait for the crack of $25, if it happened at all. Amazingly, the stock did take out this level, but I missed my execution and the stock fell too fast for comfort. Luckily, it was near the market close so some shorts took profits and covered, the stock bounced back to the $24.75-$24.90 range and I got 100 shares short at $24.70, for a nice little paper profit of $70 or so (since the stock closed at $23.95).

TIM Lesson: Memorize SOLF’s intraday chart today in addition to its weekly chart pattern—this is the main pattern that has helped me make $1+ million through short selling, it doesn’t matter the company, they all have some unique story, but 99% of them never do much more…EVER. The key is short selling into strength, but only when that strength looks to be fading intraday/overnight.

One of SOLF’s suppliers, HOKU, came out with some positive financing news overnight and SOLF has bounced a little (HOKU’s up about 20% right now), so I’m not sure if SOLF will crack right at the open, but as you see in the chart, SOLF went straight up from $20 to $25—these plays usually tend to retrace their gains just as quickly, so I think SOLF touches $22 and maybe even $20-21 tomorrow. We’ll see, I doubt I’ll be able to hold my short very long because I’m filming at the AMEX tomorrow for WallSt.net at 11AM, so ideally, I can take my profits pre-market or near the market open. TIM Lesson: If you want to maximize your profits, don’t schedule anything during market hours!

ASHW —wish I had the patience to follow through with what I believe to be true. I love being proven right, now I just need to learn to have PATIENCE!

CHNR —wish I had the guts to go long these kinds of plays, instead of always short selling! Don’t short this stock, just marvel at its chart—this is what ANY low float China play can do, so be on guard.

CPSL —the latest China play for get the momentum sickness, I really hope it gets to double digits so I can short it when the sickness wears off!

EFUT —same thing as CPSL, except divide the marketcap by 10 and multiply the hype potential by 5… scarrrry to short.

Sykes in the News: Today, my interview on Oprah and Friends aired (listen to a clip!)—all you Oprah fans, stop emailing me, telling me my website stinks! We all know it stinks—it will be revamped by mid-January 2008. So, for now, just try to follow along and feel free to email any questions to me at tim@timothysykes.com