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13 Stocks To Short: “Don’t Fire Until You See The Whites Of Their Eyes”

March 31, 2008 at 8:09 am
by timothysykes

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For you idiots out there–don’t be shy–that was the command given at the Battle of Bunker Hill, meant to get the patriots not to fire their weapons until the enemy was right up close to preserve their minimal ammo.

bunkerhill

It’s incredibly applicable to these 13 stocks because as a short seller, you have tons of choices, but you must only open fire when your enemy–the stocks–are worth being shorted–that being into weakness, to give you the best chance at hitting them square in the chest and taking them down!

So far I’ve only seen the whites of the eyes on REED’s longs and that’s why I’ve been firing my short selling musket as if I were a patriot.

(REED)

reed7

(YTBLA)

ytbla

(COT)

cot7

(HYBR)

hybr7

(BPAX)

bpax7

(WH)

wh7

(USBE)

usbe

(LUNA)

luna7

(VSE)

vse7

(GU)

gu7

(QBIK)

qbik7

(LWLG)

lwlg7

(ERHE)

erhe7

Posted in Analogies, Patterns To Short, Short Selling

Tags: , ,

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  • sneale17

    So you’re saying that you should only short when the stock starts to come back off of its runup? Is that what you mean by whites of their eyes? You never actually say what you mean by weakness…

    Thanks.

  • timsykes

    even at the top, a stock can show weakness by turning sideways and failing to breakout. or weakness could be a quick drop, bounce, slow fade. or a quick plunge, lots of different possibilities, thats why i didn’t mention them all

  • timsykes

    REED down to $3.30 now, gotta get greedier and hold

  • Gary

    huge pop on REED.. tim hope you where not short already this am

  • Val

    darn, BPAX down big & Ameritrade had no short shares, they never have any

  • timsykes

    gary not sure what u’re smokin’, but i want some. REED is still down 50 cents on the day, don’t be fooled by the low volume and ridiculous spread…variables weren’t good for an AM short, good avoidance

    BPAX nice morning tankage, had my shot to short 1000 at 4.39, but i held off because i prefer afternoon fades

  • Val

    SMBL starting to look weak here too

  • Gary

    aww…Tim, don’t you know that it is way to early to pull ou the pipe yet. I was just hoping you didn’t buy @ $3.30…due to the fact it took a good 60 cent jump up.

    Now, trading at $3.55…opppss make that 3.82 now!

    Just heckling you “money man”

    Hey thinking about riding COT on the way up.

  • timsykes

    damn just got filled on my ASTI short at $16.99…guess i shoulda had my limit order much higher! oh well, not a bad entry actually, even if its not a trade i really wanted

  • timsykes

    covered my mistaken ASTI trade at $16.69, sure, i’ll take $90, pays for drinks tonight

  • tyler

    I got in BPAX @ 4.46, do you think this thing will continue to fall later in the day?

  • Tony Ellis

    AKNS double top?

  • lmsmith

    Akns, is trying my patient, has to fall lower….looks like it’s heading in that direction

  • timsykes

    akns bouncing around, plenty of support underneath, support up above, guess what its an efficient market, avoid!

    bpax good short, could still yet bounce though not confirmed to be a negative day until the market close

  • Andrew

    looking for cot to break 3.75 what do you think?

  • NeilTheRealDeal

    good sideways price action on WH? or probably should wait for a down day right? this thing has been up 7 days in a row.

  • Andrew

    it broke! cot is gonna tumble!!! i hope….

  • timsykes

    3.75 on cot is MEANINGLESS

    WH sideways action is MEANINGLESS

    read the title of this post outloud over and over until it sinks in

    u need fear, symbolized by a negative close

  • timsykes

    cot didn’t “break”, its just an intraday dip. yes it could lead to a big drop, but now u’re just guessing, like the rest of the suckers out there.

    i really gotta push my DVD harder, maybe it’ll get u guys to understand this stuff better

  • Andrew

    why is that guessing? is that not a tell tale intraday technical break?

  • timsykes

    cuz its a little dip off the high, boo f$%$en hoo. don’t be an early short begging to get squeezed, wait for some real fear

  • Gary

    Andrew…look at the past days! COT has many intrday dips ! All at what you would call strong points. Todays volume is still very high…Still strong.

    I would say once volume breaks and it drops about the 3.40 mark, that would be a good break. and as I type there it starts to fall.

    Hope it gets to your 3.40 mark for ya.

  • NeilTheRealDeal

    Hilarious Andrew. Going nuts over that?? COT? did you enter the wrong symbol down? How is that a tell tale technical break? It didn’t bust through some support anywhere. It just came down a little bit from its high.

    and Tim, I wasn’t saying that WH was at a good point to go long or short. I was just saying there was sideways price action. And isn’t that what we look for?

    But I guess you answered the question by saying we need a negative close

  • Val

    but COT is so overought it’s ridiculous, I’m definitely watching. It’s got a long way to fall once it starts

  • Val

    and besides that is IS the third day ya know

  • timsykes

    COT’s not overbought til $5 and no resistance until $5…looks like it fading now, but wheres it gonna go $3.50, $3?support at both levels. wish the run would continue more, oh well

  • timsykes

    and its not the the 3rd day, its the 6th day–when u have this kind of pattern, it can last MUCH longer than u expect, look at WH and all the solars

  • Andrew

    what would show you the fear in order to be short cot?

  • Andrew

    oh whoops shoulda refreshed before i wrote that thanks

  • Val

    hmmm now you scared me, taking my gain o this little CRASH, better than nothing!

  • NeilTheRealDeal

    well now cot is down more than 30 cents He was going nuts at a 10 cent decline. If he posted when it breaks through 3.40 or so then I think his excitement might be worth it. Then again I’m new to this. I think I have half a brain in my head though.

  • timsykes

    dont get me wrong, this is a great stock to short, u just gotta play it safe. cracking 3.75 turned out to be a good entry, but it was just a break of the past few minutes, nothing major. 3.66 at least woulda been a nice intraday head and shoulders and now its trying to go negative, another key point.

  • Val

    I’d say fear has kicked in, CRAP I covered too soon!

  • NeilTheRealDeal

    and its easy to borrow on TOS which is always a plus!

  • Gary

    and easy on etrade.

  • Val

    Amiertrade has both SMBL & COT, I’m reserving some of both for later. I love this blog TIM, it ROCKS!

  • ViciousChicken

    Val- how do you check availability on Ameritrade? Can you do it online or do you have to contact CS?

  • Val

    I just put in an order at a high limit to see if they’ll accept the order, that’s all. Like I have an order in to sell short COT @ $5.00, and SMBL @ $9.00. They are both open now, but intraday if I see an entry I like I’ll just change the order, most likely to a market order to get filled quickly.

  • neswick

    Would LUNA be a good short today with the weak volume?

  • Jonathan

    Tim,

    Did you catch YTBLA at the top today? Would of been a good short.

  • NeilTheRealDeal

    I don’t even know what LUNA is but I’m guessing its a solar. Looks just like WH

  • ViciousChicken

    Val, that’s a cool idea- thanks!

  • Val

    you’re welcome!

  • sneale17

    Tim-

    You should look into getting a chat room or something. Refreshing this page is getting annoying…haha.

  • NeilTheRealDeal

    There is SEC rules or something against getting a chatroom. Someone already asked in his forums.

  • Mike

    Are the Sykes pattern / super nova plays usually dead cat bounces?

  • Moe

    Just to add to the whole COT shorting topic. One of the reasons why Cot shot up on Friday and this morning was because of rumours of a buyout by Cabury\Schwepes. For those who shorted at today’s high I think your in for a good run dowards. (unless the buyout occurs, but there’s nothing in the news)

    Just my thoughts

  • Brian D

    I’m going to put my little bit of love on this one, shorted 300 of ASTI at $16.30. 300 PQ at $17.50 not ideal plays for you but they’re working a small bit of magic for some okay profits.

  • Gabe

    I got a nice short in the morning on GU today. Wondering if sell or hold for tomorrow. Looks technically broken, next break level seems to be 12.60. Chance of a drop tomorrow?

  • morm13

    I went short LUNA this afternoon at $7.80. Anyone else short here?

  • morm13

    Just covered @ $7.89 for a loss. Still some strength left.

  • timsykes

    morm, u didnt waiti to see the whites of their eyes

    even BPAX is rebounding, amazing

  • Brendan Long

    To all reading this great example of how not to write an article, please join me in going LONG on COT.
    I’m working on building a 100k share position in this company AKA if you short this company you will get burned in the next few days. If you don’t believe thats fine – we’ll chat on Friday…

  • timsykes

    uh oh brandon long is building a 100k position in COT, run for the hills, LOLOLOL

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  • Vaibhav

    Tim,
    Luna is at around 7.4 right now?
    What do you think about short selling if it crosses 7.6? I have been closely watching it for a while and it fluctuates a lot between 6.5 an 7.5.
    Please give me your opinion?

  • timsykes

    i wouldnt touch luna, its already retraced

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  • PETEKUSH

    whites of their eyes…what if there bloos shot, then they would be red……that makes it more dificult

  • kelvin

    TOS has none..anyone?

  • http://www.test.timothysykes.com timothysykes

    interactive brokers had 70,000 shares this morning, now down to 45,000…gotta have accounts with multiple brokers to get the most shares

  • http://road25k.blogspot.com/ cwn6161

    Hopefully Sogo will have shares at the open.

  • TerranFirebat

    I remember those annoying hoo hoo commercials a few years ago, I almost called em up and yelled at them, I really want to short these guys!!

  • http://road25k.blogspot.com/ cwn6161

    Wow, WAVE is dying!

  • http://www.test.timothysykes.com timothysykes

    case in point, no more shares of VG to short at interactive brokers, u all had 30 minutes like i did…i have no problem risking some pain on this one

  • bill

    SCLN has some nice premarket action.

    Shorted 2000 VG @ 2.2. Really tough to trade in westcoast…

  • http://www.kabam.com tbohen

    Bill, I like getting up early, I think it would be cool as hell to be on the west coast. Get up early and have the markets close at 1PM then go do whatever!! :)

  • bill

    Tim has some magic… 30 mins later after he shorted VG, we got this great news:

    Apple (AAPL) has delayed approving Vonage’s (VG) request to distribute a mobile VOIP application through the Apple App Store , Barron’s “Tech Trader Daily” column quoted an Apple spokesperson as saying. Apple said the delay is being caused by technical issues with Vonage’s software. [Reference

  • bvance614

    FRP is another pos thats going to make a good short

  • http://www.test.timothysykes.com timothysykes

    no magic, it just pays to bet against companies that have a tendency to suck

  • bill

    Yeah, tbohen, I agree. You could also have a second job on the west coast as well.

  • http://road25k.blogspot.com/ cwn6161

    Definately glad I saved some day trades today for VG and WAVE

  • http://www.kabam.com tbohen

    Fuck yeah i could pull the second shift at Walmart or 7-Eleven!!

  • http://www.reapertrades.com Reaper

    come on, tbohen. Man up. I’d pull the second shift at a factory. (If I move to Seattle I could do that at Boeing!) ;)

  • bill

    LOL, do something you enjoy.

  • parabol64

    Just received an email from SogoTrade:

    “Effective immediately, our online commission for trades of stocks priced below $1.00 will be ½% of the principal value of the trade plus $3.”

    That makes them rather less attractive.
    Those of you using IB, sounds like they’re not cheap for penny stocks either, are they.

  • http://road25k.blogspot.com/ cwn6161

    Sogo doesn’t let you trade PNK or OTCBB, so you pretty limited to what you can buy there under $1 anyways, you know?

  • prikindel

    Hi Tim,
    I am a new one here. Why do you think spng is carcass of a company?
    Looks like they have earnings, grows and customers?

    Thanks
    Prikindel

  • http://road25k.blogspot.com/ cwn6161

    shorted VG, 1000 shares @ 2.16

  • hirohyoto

    SOLD 600 SCLN @ 4.8266 – $100ish since 3:30 yesterday from 4.68

    then

    SOLD SHORT 1500 VG @ 2.1301

  • parabol64

    cwn6161 – you can buy OTC with sogo as far as I’m aware, but you cant short.

  • AdamN

    Shorted VG @ $2.05

  • parabol64

    SSCCQ – StockPreacher alert, pretty dodgy, almost doubled in two daysNo shares on ToS though. IB has a few.
    Glad I’m finally opening an IB account so I could short these POS.

  • Jeff Moates

    TDA has plenty of $VG to short. Sorry my posts are on a weekly basis. Reaper and Tim Bohen, I’m on the west coast now working in a factory and I love it. I don’t get to do extensive research, but I get to trade the obvious wins when they come around. Up over 29% in August alone. I think I’ve become a better trader for it, it keeps my itchy trading finger at bay.

  • http://road25k.blogspot.com/ cwn6161

    para you’re right! sorry about that.

  • sandraburkhardt07

    short VG 2.25 cover at 2.00 for $225 profit! :) Sandra

  • shearinfinity

    Got in another late trade, a small in and out for $120 to add to yesterdays $500. not to bad.