Sent to TIMalert subscribers at 3AM last night, so they could be prepared for the trading day…all for $1/day:
Yesterday’s kind of afternoon rally is why you can never get too comfortable
as a short seller….take your gains and run because the whole world is
against you, even if you may be right….seriously, I have a whole section on
short selling psychology in my ShortStocking DVD, it ain’t easy being a shortie! The good news is that market strength is gooood for short selling,
it creates hype/surges/spikes to short into…so we actually have a few plays
that could be worthy of some good fading:
CYPB got FDA approval of blah blah blah, it’s fundamental good news, more of
a buy than a short…unless it gets over-extended.
DPZ was fading nicely when this market spike made it spike…$only $5.25 to
$6, but remember, $6 was the breaking point so now it acts as resistance on
the way up….tough though to really bet on a big drop to the $4s.
NCEN is an oldie but a goodie spam stock that’s now found its base and is
surging a bit…let it try to surge, maybe even buy it
PALM broke out of its base, how you over-aggressive short sellers like that?
Yeahhh, it can really squeeze, let it run, again, maybe even buy it as it
squeezes although its risky…I’ll probably just wait for the volume/momentum
to fade a bit or else it’s going to be like RMBS runup/quick drop when
nobody was looking.
SOLR has the PALM chart, but its much more subdued…again, breaking out of
its fading action, this is more of a buy than a short…for now…kinda like
HSNI (which PennyStocking DVD student Adam N. has really banked on, what
are you gains now on that one Adam, over $3,000 yet?
XTXI dropped all the way to $3.50 and I covered at $5.80 just few days
ago…unreal how far these things can drop before spiking…another one that’s
probly better for buying down here as the odds shift away from shorting
after its already dropped 50% off its recent spike highs.
Posted in Potential Plays