After initially writing about why I’d bought HYHY right before the market close for an overnight long yesterday, now I’m writing about why I shorted the same stock right before the market close today (welcome to trading). After all, I’d already taken my poorly timed $300ish profits—leaving $500 on the table…life could be worse–and I have no allegiance to it whatsoever—it’s just the latest probable fraud to have sent out a massive spam mailer that sucked in naïve greedy buyers.
You know what, now that I’m short, hell, let’s call a spade a spade—it’s a total fraud, as I outlined in my original post. But that’s not why I went short…
I shorted 2,000 shares at $2.31, emailing TIMalert subscribers with plenty of time before the market close—already up 6 cents/share on my position—because this pile of manure exemplified the classic “falling off a cliff” intraday pattern that’s usually the end to so many runs, meaning the market makers couldn’t prop it up anymore as all, or mostly all, of the spam buyers had already bought, leaving a massive supply-demand imbalance that could only be resolved with lower prices (that might attract some buyers).
You can see a similar intraday pattern on fellow spammer/fraud FORC, which also tanked from the high $2s to the low $2s and two days later—without any meaningful bounces whatsoever—then there was another panic to $1.50ish. The fact that FORC took a massive dive at first while HYHY has only taken a baby dive (so far) leads me to believe I won’t have to wait around for two days to deal with ANY dip buyers, I think there’s a pretty damn good shot at a morning panic that takes this under $2 tomorrow.
Especially since there’s little to no support until $1.80ish and if it cracks through that—which is totally possible if we take into account stop losses—LOL the irony always cracks me up with people using stop losses, or a half-assed safety measure, when they buy spam stocks, the worst stocks in the world—then its utter devastation time as it’ll be even more demoralizing for ALL longs, so support comes in at $1.50.
Don’t think it can crack that fast? Sure it can, remember there’s not a real company behind it, it can plummet fassssst, remember CNEX? Yup, $7 to $2 in 1 day! I wouldn’t even rule out under $1 once the tide turns on this sucker, which has seemingly already begun.
Especially since this was a massive volume day, not likely to be repeated, meaning its hugely demoralizing to have wasted so much buying power and still finish red, albeit slightly, on the day.
Especially since today was a perfect shooting star chart pattern, the exact same pattern that represented KYUS’ ultimate top and the day before it dropped $1/share in one beautiful morning panic
Despite the overwhelming of technical evidence against HYHY, just as when there was some nice bullish evidence the day before, I could be wrong…in which case, I still think my risk (stock going higher) is limited due to all the nervous longs and aggressive short sellers who are sensing a major top here aka would love to short into any bounce whatsoever.
This is the total inverse of yesterday: big potential downside, little upside = good risk-reward overnight short.