Short Selling Hyped Up Oil Stocks: Fieldpoint Petroleum Corp. (FPP) Et Al
Posted by timothysykes on Thu 22nd of May, 2008 08:35:16 PM
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Over the past few days, I’ve had muchas problemas shorting all these hot energy stocks—mostly because I hadn’t taken my medicine lately—when really all I had to do was wait for them to go negative on the day. (late yesterday afternoon, I made my latest tiny-account-so-I-can’t-risk-any-pain-damn-that-really-sucks-for-my-strategy kind of a mistake, shorting 300 PDO at $26.38, since it took out support at $26.50, and while it quickly tanked to $25.50, I wanted more than 85 cents/share profit so I held and it squeezed shorts like me to $29 this morning—I’d already covered yesterday before the close at $27.50, another $300+ loss uhhhhhhh)
Today was that day. After managing to only gap a tad bit higher, MXC, FPP, PDO, ROYL and about a dozen other of these highfliers just got absolutely devastated. Normally Supernovas tank just a little at first, but an absolute and immediate wreckage like this—all these stocks are down 15-30% on the day—is very rare.
First to go was MXC—nobody could find any shares to short of that one today, but as I saw that falling, I wanted to get it on the action with my 300 shares of PDO that I’d reserved so I placed the order—or rather “Joe” of Thinkorswim entered the order at $29—the guy is the slowest of all Thinkorswim chat representatives (I’ve shoulda planned ahead)(Yah that’s right TOS had plenty of shares to short, all you cheap Jewish fools whining about not being able to short deserve your grief cuz you’re wanting to save $5/trade in commissions make you miss out on ideal shorts like this one!)
By the time slow Joe put the order in, the stock was already falling, so I quickly changed it to $28, then $27, each time missing the execution since it fell too quickly. 5 minutes later, it was at $22…Thanks a lot Joe! (really my fault) My sweet Lord, this was friggin CNEX all over again—I was in that one the day before the big fall too!
No use in whining about it, I was determined not to miss out on FPP, shorting 700 shares with a limit of $7, which was waaaay below its $7.30 price at the time…got that right at $7….yah these things fell hard…and 5 minutes later, I covered at $6.25 for a profit of $500 on an investment of only $5,000. No easier way to make 10%, just sad I didn’t have a bigger account and thanks to my premature shorting, still have a loss on this one.
For the rest of the day, I woulda loved loved loved to short each bounce, cover for $1-2, rinse and repeat, but I didn’t have the trades (screw you yet again SEC scumbags!)…for example, mid-day PDO displayed a perfect crack at $22, easy $1-$1.50/share down to $20.50ish…no dice…especially when I’m writing the script for tomorrow’s show!
So I waited and waited and shorted PDO at $20 right before the market close as it’d taken out the day low. Actually went all the way down to $19 right before the close, but rebounded as some people covered, not wanting to risk a potential opening gap higher.
Experience teaches me to short the first down day of this runups—even though I hate it when stocks are down this much as it does open up the possibility of a spike—but if oil remains weak, this thing could collapse another $2-4 pre-market or at the open, so I’ll take the chance of a 50 cent-$1 spike into which I’d cover for a small loss, never risking a $2-4 spike…
Finished the day up like $700, not bad, but my readers once again did better, highlighted by this guy who made over $32,000 on these plays…hell, I don’t even need to do a great job trading to sell you on PennyStocking, there’s so much opportunity out there, you gotta be an absolute moron not to be able to profit from all this (welcome to my life)…as I always say, I’ll just write about what I see and think, you take it from there, no matter how you slice it, if you cut your losses quickly, there’s absolutely no way in hell that you can’t be better than the 90% of traders that lose money…I don’t know what they’re doing, but it ain’t this!
(This concludes our daily sales pitch, thank you for reading the Sykes pump and dump express, we hope you’ve enjoyed your visit!)
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TIM Alerts
View All| Date | Stock | Position | Ideal Exit | % Gain |
|---|---|---|---|---|
| Nov 24 | KVHI | Short | $3.70 | 18% |
| Nov 20 | STSX | Short | $3.10 | 11% |
| Nov 18 | PERY | Short | $3.75 | 25% |
| Nov 11 | IIJI | Short | $2.80 | 5% |
| Nov 6 | CVI | Short | $4 | 15% |
| Nov 5 | MECA | Short | $1.95 | 51% |
| Nov 4 | CVI | Short | $4.81 | 4% |
| Nov 3 | NAK | Short | $3.20 | 5% |
| Oct 29 | EVC | Short | $2 | 26% |
| Oct 28 | HSNI | Short | $6.80 | 7% |
| Oct 28 | HSNI | Short | $5.75 | 4% |
November: 9 alerts, 15% avg gain
October: 11 alerts, 14% avg gain
Yeah, Tim, I’m short FPP at $5.70. I can take a small bounce in the morning…as long as it doesn’t bounce back up much more over $6 I’m cool. Nice to see that it kept decreasing after hours to around $5.45.
Ok guys whats in play for tomorrow?
I see now Tim I have to reserve my shares?
Any Friday forecasts, I’m researching now.
Check this chart on SMTX
http://stockcharts.com/h-sc/ui?c=smtx
pretty clear double top could be worthy to short based on technicals alone.
Nothing like the gains that can be made on these oil plays but still… check it out.
Only problem is it came up when i did a Bullish 50/200-day MA Crossover scan…
I’m shorting Ford
smtx, whats your downside, 20-40 cents LOL c’mon shorts stocks that actually have downside
Tim coinz is back up!
on a 0.40 drop ill take my 18% and run for the hills!
hey what happen to my Timbucks
Alright, this is getting ridiculous….I am going to the doctor to get some damn sleeping pills to fix my sleep schedule.
sleeping pills will mess up your sleep even more
the only way to fix your sleep is as follows: wake up the same damn time every day no matter what
go to sleep at night when you become naturally tired
wake up the same damn time each morning, no excuses
repeat
that’s it
gotta re-establish your circadian rhythms and have regular sleep/wake cycles
Sleep, sleep and lunch is for wimps!! Money never sleeps!!
Sorry I just finish watch movie Wall Street. Anybody know Geiko’s #
Tim, I see the connection now. A barrel of oil went down today, so these stocks were affected negatively.
One day I too will be a Jedi Knight
Thank you Obi 1
Should we short these same stock Friday? mtx, fpp, pdo?
fantom dont touch any stock, judging by your questions you’re not prepared for this game yet, check out my dvd/book or read through 500 blog posts, your choice, but get some knowledge before u put $ into the ring
shorted mtx today, only 40 shares available
in 38.77
out 36. 10
second time was a profit, sorry i’m excited, like Geko said, don’t get emotional.
I might have something, look at SRG
Tim wakeup, I got something,
http://www.cbot.com/cbot/pub/p.....49,00.html
Fantom, what the hell are you doing?
Save yourself some money and get the fricking DVD, you are just guessing now.
MTX is a 1.32 billion capitalization, with a bullish trend and a hell of a messy chart. This is gonna hurt Fantom. Don’t become your own worst enemy. You can not expect to walk into a poker tournament and win not even knowing the rules, crows will eat you alive. Same here
Tim,
I really am just in love with PennyStocking and I can’t thank you enough for sharing your theories, thoughts, and trades with all of us. I am up +$455 from just two hours of trading this morning by short-selling HUSA and CRED early enough; I was too slow to catch ROYL because I kept doubting myself and doubting if it would slump, but oh well, there will be other plays. Again, thanks a lot for your input this morning. I went against what you said about HUSA though, but you were right about it being too gradual. I eventually shorted HUSA because I saw it had a ridiculous P/E and I also observed a potential slowdown in oil pricing this morning. WHO would’ve thunkit that HUSA would take a vertical drop right before market close (I covered at $7.58, it died to $7.00 immediately afterward).
Ben, you had good luck with your trade, however, your P/E ratio observation is not right, while it has a 409 p/e ratio. Most penny stocks is way higher (cause they had no earnings, therefore their P/e is infinite).
Focus on the price action, as the people that buy and sell penny stocks only care about riding the momentum, they don’t care if the company is selling hot soup in the Sahara or birth control pills in retirement homes.
This game is about not being the biggest fool (the bigest fool is the last one to take the trendy position before it turns around). Most penny fundamentals are crap, so don’t get confident for just confirming for one company what is true for 99% of them.
Couldn’t sellfkng msc nor Pdo before the drop, didn’t sell the complete paperwork to TOS, Made $ 300 today on HYBR and PEIX, short $800 overnight on cred. Yeah I know its small, I am trying to regain my self confidence here before trading for real.
Good night, better finish this assignment and get to sleep.
just re read my previous post, meant mXc, meant didn’t SEND the complete paperwork
i berett get smoe seelp
ROYL was a nice slow moving and predictable drop, as you can monitor on your Level II. I didn’t jump on MXC, which had a huuugee droppp for the day, but just too volatile… it drop over $5 in beginning of market open… so whoever the lucky bastard that shorted MXC, god bless u
shorty…. sleep…..now……….. cred….. don’t you dare to gap up tomorrow morning, go hell where you belong, going to sleep with a stop loss order on feed at 14.94 in case it breaks support before I wake, last 3 posts about oil, should start looking around for other plays.
What’s the big deal with srg 5% intraday spike on small volume, you are adrenaline junkies….
getshorty,
Thanks for the feedback, I take your point well and I agree with what you said. I want to focus ONLY on price action and you are right, all the other details become more and more irrelevant. I did get lucky with HUSA’s fade and would’ve gotten lucky if I had left my buy-to-cover at $7.19 or lower. Anyway, I am keeping an eye on FEED too for a potential reversal, and I intend to scalp a dollar or two off of PDO/MXC/FPP/KYUS if this absurd oil run continues. I can’t find any shares to short KYUS so I think I’ll have to contact the thinkorswim trading desk or whatever the hell Tim is referring to when he said he made a trade through “Joe”. I am more than willing to pay a premium commission if it means being able to short KYUS’s parabolic chart.
Good Night, fellas, happy trading tomorrow
-ben
Morning all! I see some of you stayed up REALLY late…no jobs to go to at 7:30 in the morning? Guess not…
Anywho, got 2000 FPP, 300 MXC, and 600 CRED all reserved for today. Hopefully we will see a nice spike this morning turn into very profitable afternoon fades.
covered PDO at $21, can’t risk big squeeze, gotta get ready for this TV show all day today!
i think today we will see the perfect bounce to short into
GBR is being exuberant all week, traded around $16 in premarket. Wanted to short, but no shares to be found. You guys with TOS might have luck with this one!
Sorry, forgot to post this, but in afterhours last night I bought 500 shares of SINO at 22.50 (I think) and am already up $1000 in pre-market.
i like gbr too but its been flying and wanted to wait for the price action to short
nice call on sino i was thinking about it but i didnt have the bp
Tim, in your opinion, after a crazy drop in all of these yesterday, what do you think the most probably price action is for today?
i think we’ll see the typical morning bounce followed by a handful of afternoon fades
shorted CRED (stupidly, this early) at $16.88
new post is up:
http://www.timothysykes.com/20.....d-trading/