As I posted early this morning, there were lots of potential shorts today, but I had to be extra-choosy due to the SEC’s reign of terror over accounts under $25k (explanation down below).
Awoke early and reserves shares of my favs—placing my sell limit orders waaay high, intent on lowering them if and when any became good plays:
-300 ASTI @16.99 LMT
-300 GU @16.99 LMT
-1000 BPAX @5.99 LMT
-1000 REED @4.99 LMT
-1000 QBIK @3.99 LMT
Didn’t even need to reserve any COT, it was listed as easy to borrow. But my top pick was REED, and I was hoping—somewhat naively—to get a morning spike to short into…no such luck. It went down quickly, bounced, down again, blah whatever, volume for the day was 60k, spread between bid and ask was 20-40 cents, no thanks. Next!
BPAX—no morning spike there either—disappointing. Had the chance to short my 1,000 shares into a quickly disappearing block at $4.39, but I hate shorting morning droppers, too high risk of reversal, so I hesitated and it passed me by, on its way to $4.10-ish. Missed out on $200 profit, but if it’d held $4.39, it could’ve easily spiked, risk of $200-$400 loss, not a good risk-reward. As evidenced by its surprising afternoon comeback all the way to unchanged—this is not a typical hype play. Next!
Noticed my ASTI order to short 300 ASTI had surprisngly executed at $16.99, the stock was up $1.70 on the day, daaaamn, not a high enough limit order, my mistake, actually a pretty good entry price. 10 minutes later, the stock proved unworthy of holding such daily gains and I covered at $16.69, poor exit, but a nice mistaken $80 profit. Nowhere near close to being a pattern I’d ever play, had an afternoon fade, but also a late spike—shorts couldn’t take it negative, nice higher highs on this one, too risky to short. Next!
Some ANALyst ruined GU’s spike, downgrading it due to its runup. Coulda woulda shoulda shorted into the morning drop, but again, not my ideal pattern, only missed out on $200 profits. Sad—these ANALysts are right about 30% of the time, why are they even allowed to publish? They should be relegated to posting on the Yahoo! message boards, that’s it. Piper ANALyst Charles J. Fishman, I’m talking to you. Next!
ERHE is still too low to short and thanks to Friday’s drop QBIK didn’t have much downside. WH just keeps going, like it’s a real company or something…HYBR shows nice strength, but I’m getting reports from dozens of sources about their spamming, not since SOIGF have I heard of a company being pumped so hard…tough to go long into such fraud.
After ridiculing some guy who got excited about COT breaking $3.75—$3.70 turned out to be the key level after which it really cracked, down to $3.30, maybe that guy should ridicule me!—I watched it all afternoon and when it cracked perfect sideways price action at $3.50, I excitedly/stupidly shorted 1,000 shares at $3.48…gotta learn to be more patient as it held right around there into the close…a bearish chart to be sure, but still green on the day, signal potential morning spike, even if I am rather confident in this short down to $3.25-$3.30, then the question is can it crack 2-day support there and reward me down to $3…easy to borrow shares, small enough current position and overwhelmingly bearish long-term chart means I might add to my position on any strength…
VSE, USBE and YTBLA also all had morning drops, meaning I’d only look to short into their weak closes—not that I could even short YTBLA since I found no shares. Out of these three, YTBLA was the only one to rebound—probly as a result of its hard-to-borrow shares (meaning shorts couldn’t pressure it). VSE and USBE both closed near their lows—if I wasn’t limited in my trading by the absurd pattern day trader rule, I’d probly have shorted them both into the market close. Both right under 5-day support, clear paths paved for 50 cent + drops, kills me I’m not involved!
So let me just say, damn you SEC bastards, I truly hope you rot in hell. Worthy trading opportunities are already difficult enough to come by without your anti-American restrictions. Maybe you should worry more about the “professional traders” who routinely exercise 50-100x leverage and whose actions could easily bring about the destruction of our economy.
But no, you gotta restrict the little guys. If you’re really that concerned with small investors burning through their accounts, you could help promote my blog…it’d reduce the number of naïve trader-wannabes who think they can trade profitably every day and I promise not to post any more mean pictures like that one…well maybe less of those kind.