Took a quick $300 hit this morning, covering my overnight short of PDO for a $1/share loss…just can’t trust these oil plays to rise/fall apart like textbook Supernovas because they’re tied to the price of that commodity. Add in the stocks’ illiquidity, the necessity of taking small losses on my tiny account and since I’ll be prepping LiveStock (remember to tune in HERE at 2PM EST!!!) for the majority of the day today and it wasn’t really a question of me covering for a loss—only the size was in doubt.
Whenever there’s a morning spike like this, you can usually get out for small losses—some times even small gains—because after such a big quick drop, there’s still an overhang of longs who want to cut their losses and shorts looking to enter on any bounce. That creates a nice bit of selling that helps prevent huge spikes, at least at first. Furthermore, as I wrote last night, I knew full well a gap higher was possible, but in my opinion the size of potential gains outweighed potential losses. So, not a bad trade, especially risk-reward-wise.
Just cuz I’m busy today don’t mean there ain’t trading opportunities for the rest of yas. Superman on TheLion.com is on fire with his PDO, MXC and now GBR and SINO picks to go long. He also likes TAYD as long, but nobody takes that pick very seriously. Given the kind of reversals PDO and MXC had, it’s only natural that I’d try to reserve shares of GBR and SINO today. Got 400 GBR, no SINO. GBR is just a total piece of crap, but it’s got a low float and the name change to a more hypable energy-sounding name shows their willingness to pump their stock…since my show begins at 2PM today, I might just scrap the script and you’ll watch me stalk this sucker…or not.
No SINO, no problem cuz everyone and their mother expects it to pull an EFUT, which similarly started out around $10 and surged to $50 within a few days…we’ll see if history repeats, but no use getting in the way right now, especially going into a long weekend where message board chatter will be on the rise, luring in plenty of amateurs.
As for spam stock KYUS, why short it—wait to short until it is a confirmed breakdown if and when it cracks $3.50…until then, you’ll probly just get squeeeeeeezed.
Posted in Decent Trades, Hot Stocks, LiveStock, Potential Plays