American Beauty: Two Stocks Exemplifying Perfect Technical Breakdowns

You know me, I prefer trading frauds and pump and dumps to real companies, especially real financial companies, especially really f#!$ed financial companies, but I can’t help but appreciate the perfect charts on Fannie Mae (FNM) and Freddie Mac (FRE).

These companies are moving based off news, financing, possible collapse, blah blah, blah…go watch CNBC, it bores me…but notice how the panic really set in when they both took out their March lows.

This is what I’m talking about when I say I want to short into lower lows, whether that appears on an intraday, daily or monthly basis, preferably altogether as that’s when there are stop losses galore getting taken out simultaneously, or at least within a few minutes of each other, and if you’re a short seller, it’s like riding a giant wave, a big ass wave of computer generated sell orders!

Behold the Mona Lisa for short sellers:

Posted in Breakdowns, Charts Rock!, Financing Deals, Missed Opportunities, Patterns To Short, Short Selling

Tags: Breakdowns, Charts Rock!, Financing Deals, Patterns To Short, Rumors, Short Selling

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Jorge

Mama Mia!!!

Those are beautifully predictable charts!

I understand now how you say you can see these pattern from a mile away.

Jorge
Jorge

Mama Mia!!!

Those are beautifully predictable charts!

I understand now how you say you can see these pattern from a mile away.

Jorge
Randy

Tim,

I am considering shorting a financial company that I think may go under, and it got me thinking what happens to shorted stock if a company goes belly up? Say you shorted Enron and never covered your shares.
Randy

Tim,

I am considering shorting a financial company that I think may go under, and it got me thinking what happens to shorted stock if a company goes belly up? Say you shorted Enron and never covered your shares.
Amz

It’s a beautiful thing… Like a sunset or something.
Amz

It’s a beautiful thing… Like a sunset or something.
Amz

Randy…what company you thinking about if I may ask?
Amz

Randy…what company you thinking about if I may ask?
Randy

ACAS
Randy

ACAS
Mike_13th

Mike_13th

June 29th, 2008 at 6:54 pm

RNN looks like a ss&f.

Symbol change,
Mike_13th

Mike_13th

June 29th, 2008 at 6:54 pm

RNN looks like a ss&f.

Symbol change,
Reaper

ACAS isn’t going belly up. Speaking as one who is short a few small banks waiting for them to go boom (anyone notice the news on IndyMac (IMB) after hours today?), I know a thing or two. I assume most short sellers would cover at a cent or two per share before the stock is de-registered. Anyway, for tax purposes, don’t hope that you can hold onto the position forever and avoid paying capital gains taxes. Once the company is “substantially worthless” you have to report the gain.

After IMB, BKUNA will be the next to go. I don’t have a position in either. It’s fun to watch from the sidelines, though.
Reaper

ACAS isn’t going belly up. Speaking as one who is short a few small banks waiting for them to go boom (anyone notice the news on IndyMac (IMB) after hours today?), I know a thing or two. I assume most short sellers would cover at a cent or two per share before the stock is de-registered. Anyway, for tax purposes, don’t hope that you can hold onto the position forever and avoid paying capital gains taxes. Once the company is “substantially worthless” you have to report the gain.

After IMB, BKUNA will be the next to go. I don’t have a position in either. It’s fun to watch from the sidelines, though.
Mike_13th

live chat log on here from today if you want to see todays action:

http://mysite.verizon.net/resynsu8/greenonthescreen/

Click on Chatlogs..Monday
Mike_13th

live chat log on here from today if you want to see todays action:

http://mysite.verizon.net/resynsu8/greenonthescreen/

Click on Chatlogs..Monday
Reaper

BTW, Tim, I’m excited about the new TIMalerts website.
Reaper

BTW, Tim, I’m excited about the new TIMalerts website.
http://www.within49miles.com Anthony Brown

Thanks for pointing out MHGC last week, I shorted it at $11.81. Looking at the 10 day chart, that $11 level that we’re at is pretty important. Expecting a breakdown tomorrow.
http://www.within49miles.com Anthony Brown

Thanks for pointing out MHGC last week, I shorted it at $11.81. Looking at the 10 day chart, that $11 level that we’re at is pretty important. Expecting a breakdown tomorrow.
Fantom

This makes the darkside complete. Financial, housing, and auto sectors oh my!

I’ve reached as far as to short the once mighty MER, with victory I might add.
Soon no company will be beyond the short.

Timaires have come from far and wide to join us in making these companies show their true financials.

Too much credit lending, too little cash.

//Signed//
The Market Fantom
Fantom

This makes the darkside complete. Financial, housing, and auto sectors oh my!

I’ve reached as far as to short the once mighty MER, with victory I might add.
Soon no company will be beyond the short.

Timaires have come from far and wide to join us in making these companies show their true financials.

Too much credit lending, too little cash.

//Signed//
The Market Fantom
Castanova

Any potential longs today?
Castanova

Any potential longs today?
Al

Mike 13 – what is an ss&f ?
Al

Mike 13 – what is an ss&f ?
http://www.test.timothysykes.com timothysykes

morning watchlist:

http://www.test.timothysykes.com/timsykes/2008/07/08/10-hot-stocks-still-no-perfect-setups-so-i-will-have-patience-unlike-a-strung-out-kate-moss/
http://www.test.timothysykes.com timothysykes

morning watchlist:

http://www.test.timothysykes.com/timsykes/2008/07/08/10-hot-stocks-still-no-perfect-setups-so-i-will-have-patience-unlike-a-strung-out-kate-moss/
Oswald2001

Al,

I believe “ss&f” refers to a “scam, scheme & fraud”.
Oswald2001

Al,

I believe “ss&f” refers to a “scam, scheme & fraud”.
Bubba’s Been Quiet

Randy, Bubba’s been lookin’ at MCGC, PCAP, ALD and ACAS for a long while, now. Bubba ain’t gonna say you’re off-base, but does suggest you do a little more research into ACAS. Bubba’s been short and long on all four at various times. For what it’s worth: Cramer’s, supposedly, personal friends with ACAS’s CEO and has mucho respect for his being able to finagle the stock and the company to keep its status on the SPX, even tho Cramer’s staff is really down on ACAS bookkeepin’. But it ain’t nuthin like Einhorn bein down on ALD. Nor anythin like the NEW bookkeepin that was done while Einhorn was on the NEW board.
Bubba’s Been Quiet

Randy, Bubba’s been lookin’ at MCGC, PCAP, ALD and ACAS for a long while, now. Bubba ain’t gonna say you’re off-base, but does suggest you do a little more research into ACAS. Bubba’s been short and long on all four at various times. For what it’s worth: Cramer’s, supposedly, personal friends with ACAS’s CEO and has mucho respect for his being able to finagle the stock and the company to keep its status on the SPX, even tho Cramer’s staff is really down on ACAS bookkeepin’. But it ain’t nuthin like Einhorn bein down on ALD. Nor anythin like the NEW bookkeepin that was done while Einhorn was on the NEW board.
noobtrader.08

Great post Tim!

Thanks.
noobtrader.08

Great post Tim!

Thanks.
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American Beauty: Two Stocks Exemplifying Perfect Technical Breakdowns

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