Each of the past two mornings, I’ve shorted Uranium Resources, Inc. (URRE)—mainly cuz it’s up so much and its horrendous long-term chart and level 2 price action tells me there’s a ton of bitter shareholders looking to sell on these bounces. This 100% stock price spike naturally has brought in the short sellers, many of whom are complete morons, thinking it’s gonna collapse at any moment and I gotta thank God for their existence cuz their premature entry and inevitable squeezing is what causes these morning spikes.
Yesterday, I wisely waited for a nice wall of sellers to enter—meaning there was plenty of overhead resistance, even during the spike, shorting 1,500 at $4.05—even though it was off the day high by 20 cents…I wanted 30 cents of downside and got some of it, but when buyers seemed determined in the $3.85 range, I said to my self “can’t be greedy, this isn’t an I deal play” (it wasn’t negative on the day nor the afternoon). Covering at $3.90 it was a decent $200 gain.
Today, I got greedy. Wanting to make $150 so I could get to $20,000 before quarter’s end—classic amateur psychology and not waiting for a wall of sellers—I shorted 1,500 shares again at $4.40, thinking that this morning squeeze would surely collapse. Immediately and as I wrote in the email I sent out to TIMalert subscribers, I knew my entry was sh#@…friggin greed man, friggin greed! But in the grand scale of this stock’s price action, it wasn’t that bad…
Just a few minutes later at $4.60, I thought about taking the loss, but rationalized this was just a morning squeeze and right then–thankfully–the wall of sellers came in (ideally TIMalert subscribers got in here at 4.50-4.60) and the price gradually retracted to the $4.35-$4.40 range…but no more…I gave it another 20 minutes—an eternity in a non-ideal play—but when it showed signs of bototming, I got out around $4.39, $4.40, a loss of $2, yes two dollars.
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Stock lasted another 5 minutes in that range, but the sellers were too many so it crashed down to the $4.15 range where, other than one bounce attempt, its stayed and it only gotten weaker, now negative on the day at $3.85 (just cracked massive 2-day support at $3.90)(1PM lunch meeting is gonna ill my chances at catching a probable further afternoon fade…part-time trading is a bitch!)
Funny thing is even though I played it correctly the first time, it was so quick TIMalert subscribers didn’t profit much…not that there was much profit to be had…especially since sometimes emails take a few minutes (working on a solution to that)…now that my timing was off today, but it was the big tank day, subscribers banked 15%+ over the past 2 hours and had plenty of time to get in…strange how that works, huh?
Not that it really matters, but the better stocks to short this morning were the speculative oils like Royale Energy, Inc. (ROYL), Tengasco, Inc. (TGC) and Pyramid Oil Company (PDO), all somewhat predictable by Mexco Energy Corporation (MXC)’s breakdown yesterday—no negative Citron report required!
Posted in Bad Trades, Breakdowns, Impatience, Missed Opportunities, Patterns To Short, Short Selling, Short Squeezes