No matter that oil continues hitting its highs, nearly all of the recently hot energy stocks–from the strung-out junkie-like wannabe real alternative energy plays like Capstone Turbine Corporation (CPST), Quantum Fuel Systems Technologies (QTWW) and A-Power Energy Generation Systems, Ltd. (APWR) to piece of crap AMEX plays like Fieldpoint Petroleum Corporation (FPP) and Pyramid Oil Company (PDO)–have faded quite nicely over the past few days. People are scratching their heads and thinking, oil is high, these stocks should rebound, right?
Unfortunately, this gutter of a niche with the worst companies in the world, isn’t that simple. I’m not bashing–I have no positions in any of these stocks–it’s just the reality, these companies will fail and/or their stocks will return to pre-exponential rise prices over the next few months and years. Maybe one or two will stabilize, but that’s pushing it. All their little earnings reports that show such strong growth and profits, ALL of them can and have been manipulated to appear great. Creative accounting, works like a charm, stings investors like a bee.
And that’s why these stocks can drop 20-30% in a day or week without rebounding–because there’s literally no big money behind them, just the illusion of big money, crafted by hedge fund traders and message board posters to prop up, nay, pump up, these carcasses of companies. Sucking in the stupid little guys who are too soft/new to realize how corruption and manipulation tag team to create all kinds of illusions, often times perfectly uptrending charts…before they go splat.
If more of you had my instructional DVD PennyStocking, you’d know this, but as it is, many of you actually believe in these companies–and their technology, potential, blah blah Kool-Aid BS–so you’ll probly end up going down with the ship. And that’s just sad.
Don’t get me wrong, I’m not a master trader, by any means (I mean seriously click and see some of my trades HERE), these stocks could very well come back, but over the years, I’ve seen too much crap rise and fall and never be heard from again, so methinks, nay, meknows, the odds are hugely against them. Especially since this latest drop eans they’re all failed breakouts…so I’d stake my 70% return over the past few months on that!
I’ll continue ignoring these fades, only getting interested at any spikes as they are potential shorting opportunities, made great by those nervous nellies who bought in at the top and refused to take profits or small losses and are now sitting on some pretty hefty losses, which they’re still unwilling to take, making them think about it all the damn time, ruining their lives aka setting them up as perfect sellers on any spike, allowing for high percentage shorts.
After all, I have learned some simple rules that prevent me from entering into non-high percentage/non-ideal plays…like buying this crap in the hopes of a rebound….and blogging has really helped me stick to them. I pray for you brave souls who are willing to buy stocks 20-50% off their highs, but still up 200-500% off their lows…that’s some damn risky low percentage stuff, I don’t care how high oil goes!
Posted in Breakdowns, idiots, Patterns To Avoid, Short Selling, Solar Stocks