This was the weirdest TIMalert I’ve ever sent out, so try to follow the chain of events…

Original alert:

shorted 300 RBCAA at $23.55…all based on THIS scathing research by Citron Research…this guy is one of the best short sellers around and he has quite a following–as u can see from the intraday chart, it dropped big when the article first came out and now has bounce a little along with the overall market…with only 300 shares, this is low risk, i’ll cut my losses if i get down $1/share or so, but the stock was only at $24 when the report came out so unless the market really turns around–unlikely–i think this heads back to the day lows around $22…maybe even a gap down tomorrow…Citron has had many big winners, most recently FOUR and PDO–he put out alerts right near the top on both stocks, so this isn’t my call, this is his call, i’m just trying to go along for the ride

TIMalert I sent out right before the market close at 3:51pm:

$300ish loss, safe loss cutting, not even an option to hold overnight, market rebounded, stock rebounded, shorts get squeezed, not taking any chances

Just as I was about to sulk for being dead wrong, I received an email from Citron at 3:53pm–as I am a subscriber on their list–reposting what was already on their website…

Can you guess what happened?

The stock dropped $2/share smack into the market close as thousands of loyal Citron subscribers–Andrew’s got a great track record–jumped in short!

The chart below shows how it all panned out:

I got out at the worst possible minute, but I’d do it again exactly the same all over again because quick loss cutting is a hard rule I have. Luckily, for many TIMalert subscribers, emails take a few minutes to be sent out so by the time they got it, the stock had either dropped substantially–sneaky Citron with the delayed email, sneaky, sneaky–or the market had closed for the day and they were fortunate to get an even bigger drop the next morning, partly due to late coming short sellers and more importantly, the overall “panic” at the market open for the entire stock market.

Basically, I played it waaaay safe–as I usually do–and turned out to be the only one who didn’t bank on this TIMalert…still, a good alert and a good trade, despite my loss. Reaper had like 7,000 shares short so I’m waiting for a blog post to say how much he banked (you better do it buddy, you’re living proof how much a TIMalert subscriber can make), but for now see some subscriber testimonials below:

Well, I know Tim’s timing is usually off, so I held overnight. I just covered at 19.44 for a 20.77% profit after commissions. Thanks Tim!
-KT

In at 23.56, out at 22.49 just before the bell. Not bad. Sorry it didn’t work out for you, Tim.
-Akurtz

Tags: Bad Trades, Breakdowns, Testimonials, TIMalerts