All of a sudden there’s a ton of crap stocks looking perfect for PennyStocking: (AGEN), (COT), (PSTI), (GBRC.PK), (CNOA.OB) and (NCEN.OB). Why then did I choose only to short PSTI…because it was the only one with borrowable shares!
As I posted towards the end of THIS post, PSTI’s pattern is the EXACT chart pattern that made me a millionaire by age 22 and it’s why TIM is up now 46% since November 2007. Can’t short more than 10,000-30,000 shares (this time around at least, liquidity willing you can sometimes get up to 100,000 shares), but ideal for smaller traders/investors in the $2k-$100k account size.
Early in the morn, I borrowed 1,000 shares, looking forward to shorting into the 3rd day of an exponential runup for this failing biotech strapped with tons of bitter shareholders who naively bought into the dream at higher prices and are now fortunate enough to get out on this bounce caused by the combo of minor news and several penny stock promoters who sent out one dozen+ emails touting this POS! (Yeah dude, no diff. than VION in the least!)
Spike at the open to $5.05-$5.20 made me pause…scary was the 14k buy block at $5…then big sell blocks came in at $5.10, then $5.05…wanted to short into it…no telling how fast it’d get taken out. Got my execution at $5 and barely 10 seconds later it was gone, plundered by other shorts/sellers…within minutes, panic selling…$4.60 x $4.75 and I was determined to hold and see if it could crack 2-day support at $4.30…no matter my mid-day meetings…but when buyers took out a 4k sell block at $4.65 somewhat quickly I decided to lock in my profits, covering at $4.65, a $330 profit, 6.6% gain, after commissions in less than 20 minutes.
Solid profit, easily predictable morning panic due to recent promoter-induced gains and the probability of a big reversal. If I was a long, I’d have panicked too…after $4.30, no support til $4…then $3.
Meeting went well…wait til you guys see the projects I got brewin…borrowed another 1,000 PSTI just in case it showed signs of fading late in the day—usually good to short into the market close of the first down day on these suckas…thought it was gonna crack at $4.50, reshorted at $4.51, fakeout, bastards, no can’t blame them, blame yourself idiot…broke my own rules about not anticipating technical breakdowns (gotta wait to short into/after the break!), I deserve to get squeezed, but judging from the chart below:
and recent supernovas, all I gotta do is wait and the midget-buyers should get crushed by the basketball-player-sized sellers.
TIM now up over $18k so I can afford to hold this one a little longer…yeah right like that’s gonna happen you undisciplined prick!…okay maybe you’re right…c’mon stop losses, take out at $4!
Tags: Analogies, Breakdowns, Good Trades, Manipulation, Patterns To Short, Short Selling, Supernovas
