Exactly what the title says, just because I’m looking to short or even while I’m shorting a stock, that doesn’t mean you can’t profit–sometimes more–by going the opposite direction aka buying. That’s the beauty of PennyStocking, there’s so many ways to profit, it all depends on your personality and what you’re good at. Since I’m a cynical Jew who’s seen crap / been burned, short selling works better for me and yet the big money was made from the long side yesterday and today on Northern Technologies International Corp (NTI).

As I wrote in THIS post, this stock was up due to Superman being on fire…I could be wrong and their new subsidiary actually could be onto something, but again, my prospective is that all these companies are full of BS aka about as trustworthy as a pedophile priest. Not to mention that before Superhombre picked up its story, it’d gone from $8/share 10 years ago to…wait for it…$8! Exactly, Driving Miss Daisy is more action packed and Jessica Tandy is more lively (she’s dead) aka totally unworthy of this 75% spike.

So, putting that thinking into practice, I looked to short into any ridiculous morning spikes, morning panics or afternoon fades (no afternoon spikes or gradual rises…there is a difference, it’s called getting the odds on your side!). Yesterday, while I knew I should wait to short in the afternoon…as the action is much less risky, I shorted 500 at $11.70 because it’d already dropped down to being negative on the day below $11 and I thought this was just a lucky bounce. Considering the spread right after I shorted $11.25 x $11.70, it appeared as though as I was right so my goal was to cover under $11…a few minutes later when buyers steeped up at $11.25 and the ask was $11.30, I decide not to risk it–after all, I hadn’t been disciplined enough to wait for appropriate price action so I took my 40 cents/share gain, covering all at for just under $200 in profits.

Stupid scalp. Patience Timmayyyy, patience!

Turned out to be a good cover since an hour later, with heavy Superman posting, the stock spiked up to $14.40 on pathetic volume of about 50,000 shares–my god this is a sleepy stock aka doesn’t take uch more than one message board to get it going…I waited til the buying ceased and a wall of sellers crowded in behind e just above $14–believing it to be a short squeeze that would surely be the end of all buying–shorting 350 shares at $13.65 and $13.55 taking that level out…predictably, a few longs thought this to be the end too and the price tanked to $12.80 x $13….I wanted to hold, but we’re talking tankage on like 5,000 shares traded…screw that…covered at $13 for another 60 cents/share, total profit of $380, done for the day with too much trading.

Obviously an easier way to make $ would be to just buy 500 shares, let Superman’s followers buy in, sell for $2, 3, 4/share profit! But not me, I’m a penny stock short seller, I like to make profits the tough way.

Today, I thought it must surely be the end, so when it failed to do anything at the market open, I shorted 300 shares–small position due to me being wrong the day before–at $13.40…again, a slight panic to that now proven as being ey $12.80 x $13 area…big buy blocks moved in, stock didn’t look like it’d crack big, I covered into a 1,000 share sell block at $13, for a sad little profit of $105.

P A T H E T I C

And yet it was a good cover as the stock spiked again to $15 and now is falling back languishing in the $14s. You see I’ve been dead wrong about this stock and yet I’ve made about $500 cuz I used walls of sellers, the spread and typical trading psychology to my favor. If you don’t wanna do any of that, just buy these stocks that are getting pumped–be careful though not to be late cuz as NTI will surely prove in a few days/weeks–no different than GBR (particularly this one), PDO, FPP, ROYL, MXC–surging stocks usually reverse (as long as its not earnings/buyout related)…me, I gotta conserve my trades on this one cuz I don’t wanna miss the probable $2-3 drop that will surely occur within an hour…as to what day, who knows, be better than me and wait to short only on the first down day.

Tags: Breakouts, Decent Trades, Impatience, Short Selling