TIM $14,245, Down $78 on the Day.
Covered 300 CSUN @ $16.74, Bought 800 FRPT @ $5.15.
I couldn’t make any day trades today, so I was forced to play stocks for the market open and close. When I awoke to see solar stocks strong, I knew I’d have to cover my CSUN short quickly – it hadn’t broken the key $16.50 market after-hours Monday, so I knew it probly still wouldn’t crack. Surprisingly, the first trade of the day was $16.54, but it didn’t take out that bid, so, within seconds, I covered at the ask at $16.74, a 19 cent/share loss, or $70, no biggie. But lessons learned: wait til these stocks actually crack as these $70 losses add up. Anyway, I was right to cover as the stock did surge $1 within 10 minutes of the 8am pre-market trading. Again, a perfect opportunity to go from short 300 to long 300 – ahhh, $25k dreaming…
Lots of stocks in play during the day, but I planned specifically to buy at the close, for overnight gap-up plays. My options were:
(Nasdaq: DIGA) – a nice candidate for the January effect, announced a new CEO today, rose 21 cents to 63 cents. I like the news and the chart (for a potential 20-3 day mover), but it didn’t feel right at the close (volume lacking), probable gap up of 2-3 cents only.
(Nasdaq: SOLF) and (Nasdaq: ASTI) – these solar plays both ran up $1.50 going into the close and, for a second, I thought about buying them and holding overnight. Couldn’t do it, too risky. Looks like the wrong decision as they’re both up 50 cents after-hours. No points for being Mr. Conservative. They’ll probably both take cracks at their recent highs, not sure if they’ll crack, but if they do, I think they’re getting close to all out mania, aka great shorts.
(Nasdaq: AKNS) – the solar play du jour, up 44%, and nearly 100% in the last week, this time breaking out to a new high on some pretty underwhelming news about getting a distributor for their products. Really, really wanted to buy this into the close, but I couldn’t, the news is just too fluffy. Again, wrong as it’s up nicely after hours – see what I mean when I say ignorance is bliss for traders? I think this one can really surge, especially if this amazing volume (traded 16mil today, float 18mil, 2mil share short) keeps up. 2-day breakout would be at $12, nice fat round number, me like.
(Nasdaq: FRPT) – up 10% on some BS optimistic news, I bought this one right before the close at $5.15 because it downtrended nicely (but stubbornly) into the close, it’s got the perfect January effect story, and this is a nice 2-week breakout. Ideally, I’ll sell in the $5.50-$5.75 range, but I doubt I’ll have that kind of patience. Right now, it looks like $5.15 was a nice, low risk entry.
(NasdaQ: SYNA) – another possible January effect play, nearly 50% off its high in just 2 months, I love their technology, but it’s a component play so it’s always dependent on someone else. Why it’s up today on strong volume, people spreading G-phone rumors, who knows, who cares. Wanted to buy into the close, but it’d only be 100 shares so the $ upside wasn’t there.
(NYSE: GA) – nice intraday move lower, didn’t even bother looking at it since I couldn’t day trade. Remember that chart though, good shorting when it fails to go positive early morning.
Some cool new 2008 links!
Trainee Trader reviews my book, saying it’s a “great cautionary tale that I think you will enjoy reading.”
A pretty impressive WallStrip mash-up.
