A Decent Profit From The Airport Lounge, Now I’m Up 50% In 6 Months, Jewww Yahhh!
First time around shorting sketchy-100-year-old-oil-company-that’s-watched-the-world-go-by PDO, I barely made anything before it spiked hardcore and proved itself to be a full fledged Supernova, squeezing those stubborn short sellers who didn’t purchase my instructional DVD PennyStocking (or else they’d have cut their losses quickly) and putting the stock on my back burner as a potential short. So why today—when I knew I’d be hopping all over the place on planes, trains and automobiles during market hours—would I look to trade this sucker?
Simple: cuz I’ve got years of experience trading while traveling and considering this is the 3rd day short-squeeze-induced runup inside of a larger 8-day commodity-related runup, the odds favored an intraday breakdown of some kind—large or small would be determined by stop losses, fear, commodity prices and volume.
Mind you I was also watching fellow 8-day speculative AMEX oil runner MXC for a possible short—reserving 500 shares in addition to 500 PDO, just in case the variables aligned—but watching the two from the airport lounge, PDO looked much weaker with big sell blocks reigning down on sturdy buy blocks while MXC had much less volume, hardly any sellers so it didn’t look good to short at all.
Considering my flight was in less than 1.5 hours, I didn’t look forward to executing a 500 share short PDO at $8.48, but the sell blocks impressively took out 14k of the 15k buy order at $8.48 so I got in with some big $ and my little order took out the remainder of the buy order so immediately the price was $8.45 x $8.50. Understand this position was less than 20% of my assets, or a half trading position, because if you look at PDO’s multi-year chart, you see it once spiked past $10 (albeit briefly) so I’d have no problem doubling up if it went higher.
The small float (1.3mil) and potentially big news (doesn’t even matter, all the news out of these companies is “potentially big”) scare many potential shorts away–I think those variables are just like scarecrows that are much less important than the above-listed variables.
But I didn’t need to worry about that—within 30 minutes the sell orders just kept streaming in, the breakdown was definitely on—even as commodity prices and MXC held firm—so I wanted to cover under $8 but with my traveling schedule and big buy blocks everywhere up until $8.15, I decided to play it safe and cover into the ask at $8.18, a 30 cent/share gain in 35 minutes, $135 profit after commissions, now 7%+ on the month, 50% even in 6 months. Jewwwwwwwwww yahhhhhhhhh!
I hope all these crappy commodity plays keep going—this one, FPP, KOG and MXC—maybe GENC-like, might be tough though—great risk-reward shorting opportunities all along the way—but only when the variables are perfectly aligned like this. Maybe I will celebrate with that beer pong table!
Get Tim's pre-market watchlists, real-time trade alerts & access to subscribers-only website all for just $1/day -- sign up for TIMalerts today!
Alternatively, get all blog posts emailed directly to your inbox by signing up below:
LoadingRelated Reading
20 Responses
Trackbacks
Add a Comment!
If you want to receive TIMBUCKS, you'll first have to Login before posting a comment. Click here to learn more on the new TIMBUCKS rewards program.
Top TIMbucks
Our top TimBucks earners to date are:
- Yngvai (593)
- getshorty (321)
- JMoates77 (258)
- YoungGunz (253)
- ViciousChicken (237)
- investorslive (224)
- Fantom (197)
- Davey (194)
- ivegotstylekid (188)
- brent (185)
Navigate
Only $29.95/mo
Earn $$$
$
Participate & Earn
52 Links
136 Books
Buy TIM products!
Up 114%
Clips 24/7!
UPDATES
TIMtrades
Learn from my successes, learn from my failures, learn from TIM. Click here to learn more.
| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| Sept 4 | COIN | $5.70 | $6.21 | $745 |
| Sept 3 | COIN | $6.49 | $6.30 | $305 |
| Sept 3 | COINW | $2.75 | $2.85 | $180 |
| Sept 2 | TAYD | $7.51 | $8.13 | $545 |
| Aug 18 | FOUR | $2.80 | $2.66 | $342 |
| Aug 14 | APII | $2.66 | $3.30 | $1261 |
| Aug 12 | APII | $3.25 | $3.40 | $285 |
| Aug 7 | NOBL | $5.02 | $5.49 | $680 |
Total: $26,508 (
114%)
1Dan-O
April 28th, 2008 at 5:08 pm
Good call on Visa, it took all my will not to buy a call option
2timsykes
April 28th, 2008 at 5:19 pm
i dunno why u guys think i’m anti-V, all i said was that people are investing for the wrong reasons and some time its gonna catch up…could be when the stock is at $200…i have no idea, too many variables, too random, i’m just gonna stick to pump and dumps and short squeezes, way up, way down, much easier
3Jim
April 28th, 2008 at 5:33 pm
what you don’t realize there timmy is that PDO filled half of its gap in the moring. thats a no brainer strong play. Once a play has tried once its almost never expected to try again within the same day. you just went against a favorable rule. lucky trade there imo..
4Dan-O
April 28th, 2008 at 5:36 pm
I didn’t actually say you were Anti-V, but you definately tempered the hype with a dose of reality.
5timsykes
April 28th, 2008 at 5:40 pm
fine filled the gap, whatever, its the 3rd up day–SHZ, DARA, IDMI, PSTI, SYNM, EDEN–how many of plays do i have to post to make u understand this isnt luck, its PennyStocking!
6timsykes
April 28th, 2008 at 5:47 pm
dealbreaker got the scoop, free chipotle for everyone at my speech tonight:
http://dealbreaker.com/2008/04.....ipotle.php
adarsh, lets sign them up as a sponsor for the upcoming college tour!
7timinhumboldt
April 28th, 2008 at 5:58 pm
My friend Mike Seeber from St Paul is coming to your speech! Ive got him all pumped up. “He is the best short term trader I have ever seen. He trades stocks, indexes, options and futures, long and short, sometimes all in the same day. If you are interested in the insights of a successful short term trader his e-mail address is: Tomandprisha@msn.com”
Last weeks negative forecast was a miss. TTT was correct again.
Thank you,
Mike Burk
YTD W8/L5/T4
Disclaimer: Mike Burk is an employee and principal of Alpha Investment Management (Alpha) a registered investment advisor.
8Carlos
April 28th, 2008 at 6:33 pm
Just bought your DVD, will close all positions tomorrow morning and wont trade until it arrives.
Hope it arrives soon before I get my abstinence syndrome.
9Carlos
April 28th, 2008 at 6:34 pm
I meant withdrawal syndrome
10Jim
April 28th, 2008 at 7:18 pm
how many haters on dealbreaker. hahah what losers.. they suck at life so they critique someone elses.. lol
11Tony Ellis
April 28th, 2008 at 7:40 pm
Hope some of you caught GTE.
12Dan
April 28th, 2008 at 8:38 pm
SCA people going to break out this week over 1.50 this week
13BenBien
April 28th, 2008 at 8:58 pm
Dan, substantiate your predictions. What makes you think SCA will break out this week? Let me know, otherwise your words are just meaningless OPINION!
14jay
April 28th, 2008 at 9:24 pm
Yo, T.S.
Im me … i got a proposal you may be interested in.
15Jibri
April 28th, 2008 at 10:53 pm
Ok guys, I’m tired of being a fan, I’ve been doing my homework but I’m still looking for my first short. Any guidelines I need to setup, # of shares, etc. Is short selling just hype, give some stats. How much are you guys pulling down a week or month?
16Michael
April 28th, 2008 at 11:56 pm
Time to look at NURO? up big today, give it 2 more days and than short?
17ivegotstylekid(TIMBUCKS: $188)
May 1st, 2008 at 9:02 am
great job tim on the return
18Davey(TIMBUCKS: $194)
May 1st, 2008 at 9:06 am
The site is looking good Tim, just waiting for the first new post.