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When I shorted and covered the most liquid penny stock around right now ZANE multiple times (shorted 2.75, covered 2.15, shorted 3.30, covered 3.10 and one and on, look at the right side of this page) for profits of $14,000+ and wrote this blog post detailing my research why I thought the stock would absolutely collapse, lots of shorts praised my work at “exposing” questionable penny stocks….TIMalert subscribers and PennyStocking Silver subscribers also banked as you can see from my latest daily watchlist
In fact just this morning I was short 19,500 shares overnight from $2.86ish and the odds looked good for me to cover into a morning panic, especially given the first down day (my PennyStocking DVD, PennyStocking Part Deux and TIMfundamentals Part Deux DVDs and actually all 10 instructional DVD packages preach that this is my bread and butter pattern to short sell, responsible for me turning a few thousand dollars into a few million without the use of leverage…
But ZANE did NOT cooperate this morning and even though it was hanging around slightly negative on the day, there were big bidders of 10,000, 20,000 and even 30,000 protecting the $2.60 support so I covered my entire position at $2.77 and the stock spiked to over $3 within 20 minutes, with a few people suggesting I “caused” that spike by my alert to TIMalert subscribers.
I wish I could force these ignorant people to watch PennyStocking Part Deux specifically as that details how when a morning panic fails and there are lots of stubborn shorts who simply refuse to believe that a stock up 1,000% won’t breakdown perfectly (unlike IFLG which TIMalert subscribers, PennyStocking Silver subscribers and I profited $75,000+ on because it did fade gradually each and every single day), that the odds switch from probable morning panic to probable morning spike…not to mention that even before today’s surge on ZANE, it demonstrated great difficult breaking below $2.80 YESTERDAY
One of my wiser DVD students even points this out as he made $400 today covering BEFORE me:
Tim – covered ZANE for a quick 400 (3.17 to 2.77) on 1000 shares – Seattlehiker. People need to stop complaining and recognize the difference between a morning panic and a pre-spike consolidation. I had already covered before I got your text. Frankly, ZANE (not to be confused with “Frank Zane”) was showing signs of this yesterday when it really didn’t crack, and volume tailed way off on the relatively small pullback – ie looking more like a consolidation. If they are waiting for your text message with these types of trades, then they haven’t learned a thing.
Granted, many TIMalert subscribers are new so they must have it spelled out for them that this stock is acting stroooong, as I posted at 10AM on the TIMalerts.com subscribers-only website:
Update: 30 minutes later as i type this blog post i forgot to click publish on, the stock is now squeezing to 3.30 proving my buy to cover alert to be solidddd…for those of u who dont like to short, i would buy my own buy to cover alerts on situations like this (not when i cover solely for computer problems as this was pure price action/big bids on level-related buying) and i would have flipped from short to long would it not be unethical for me to trade against my slow-as-$%$^ subscribers who don’t realize the best shorts can become the best longs during short squeezes like this!
covered all ZANE at 2.77ish, not breaking down the way I wanted, playing it safe, could be a morning spiker, disappointing profit of $1500ish for me
You see I don’t wish to trade against subscribers (even though NO subscriber or anybody on the internet should even be trading these alerts as they’re meant to teach ONLY) which is why I didn’t flip from short to long, but I gave ample warning that I might buy this stock later in the day…
And because ZANE held strong, holding key $3 support at 10am and 12:40pm, then $3.03 at 1:15pm and 2:15pm (higher lows are a bullish sign, especially on the first up day of a stock crawling with stubborn more-long-term oriented shorts) I waited and waited to see if this strength were just a fakeout, but the bid kept rising when somebody starting buying big at $3.09 and $3.10, I piggybacked that big buyer alerting TIMalert subscribers:
Bought 3000 ZANE at 3.10….I know, I know, lots of you are die hard shorts now because of my own research and while I think this company absolutely stinks, it has defended its support levels at 2.90ish very well and is now solidly holding up on the day, basing at 3ish…those who watch my DVDs know the worst companies can become the best buys because of stubborn short sellers who get trapped thus allowing for short squeezes…just like when I bought AENY ins the 4.60s and 4.90s and it surged to 5.40 even though it got crushed weeks later after a failed breakout…I don’t know if this breakouts past 3.50ish resistance, but just like the first down day signaling a great short, the first up day on a low marketcap stock like this can signal a major morning spike, not panic, the next day so my goal is to sell at 4ish, but if it can’t break past 3.50, I’ll settle for profits there…this is a VERY small position because the risk is SEC halt and/or financing news that will crush the stock, possibly without the chance of me being able to get out in time…good risk/reward here with a miniscule position, if it doesn’t close storng, I will close out my position as I can’t risk a morning panic if I am wrong in this speculative buy.
The stock surged to $3.40ish, but finished at $3.20ish as more short sellers entered due to JohnWelshPhd linking to my research article on Twitter, reinforcing his 7k short at $2.97 and attracting a whole bunch of new shorts to the party…afterhours the stock is steady at $3.20 up 40 cents/share on the day, or 14%
All my haters are up in arms on Twitter (You can follow me on Twitter and I’d link to all the nonsense but Twitter seems to be down right now so just do a search for my name later and you’ll see) saying that I caused the morning AND afternoon spikes…John is particiularly angry because I Tweeted him my research article so he feels betrayed by my late day buy.
He’s not alone, several TIMalert subscribers failed to read my morning warning or my afternoon post on TIManswers explaining why ZANE was more of a buy or partake in the now 140-person strong chatroom where I and others were messaging quite a bit that ZANE was looking strong and it was a potential buy.
Long story short, I still think ZANE the company stinks. But I also know that it actually consolidated rather well and there could be another leg or even two legs up before it does collapse as it’s still just a $27 millionish marketcap.
More importantly, I will not ignore technical signs to accommodate the slow and stubborn. I am a trader who adapts to trading opportunities and it’s difficult for anyone not to say I didn’t warn EVERYONE as to my intentions all day long…not my fault if you want to ignore technical and base your investment on a post I did 9 blog posts ago (yah I do a lot) and for those who didn’t see my post to TIMalert subscribers, it’s your own damn fault for not subscribing!
It’s hilarious to me that non subscribers think they’re entitled to be kept updated as to my trades and intentions when I have linked the phrase TIMalert subscribers about 17,000 times saying {“only TIMalert subscribers will know my trades in real-time)
So no matter how hard I try to teach my DVD students to be agile and adaptive to the markets, many refuse to listen…it takes potential massive short squeezes like ZANE to help them learn.
PS For those of you who think I am “going against what I teach”, well, you haven’t done your research…you wanna mock my instructional DVD packages, fine, but don’t come crying to me when your assumptions as to my strategy fall flat. Don’t come crying to me when you don’t bother to read the 2,300 blog posts I’ve done detailing how trade, namely when I do ride the momentum in these questionable companies as you can see from posts all the way back in 2008 when I bought HYHY overnight even though I knew it to be complete crap. (I made 5% roughly even though it coulda woulda shoulda been a 15% gain, I get too nervous, but that was a true promotional mailer play)…and aagain when I posted on February 4th just a few weeks ago thinking Americas Energy Company (AENY) would have a big short squeeze (I was wrong and barely profited…the big short squeeze came February 9th validating my thinking although I didn’t profit on it whatsoever…in fact I lost a few hundred)
And to those of you who don’t understand that big runups stocks can have multiple legs, feast your eyes on another recent runner Visteon Corporation (VSTNQ) which is now over $1/share up from 7 cents/share the other day…the chart also consolidated well for several days…ZANE has now consolidated for 4 days, plenty of time for it to collapse…and yet it didn’t…both are solid LONG setups, not shorts until they break and hold below key support levels:
So yes I am long a miniscule 3,000 shares ZANE overnight from 3.10 and I think I’m in pretty good shape to sell into a spike at THIS INFORMATION IS FOR TIMalert subscribers ONLY….that’s right, for those of you wanting to know my exact expectations for tomorrow and my real-time trades, then become a TIMalert subscribers…don’t come bitching to me because you refuse to pay $50/month for quality information…go join any of those free penny stock newsletters if you want, you get what you pay for!
PS ZANE traded nearly $16 million worth of stock today and the only broker that had shares to short was Sogotrade…those thinking it was my subscribers who got squeezed and covered this creating the spikes are severely misinformed…until the past few weeks, I’d solely been promoting Interactive Brokers and Thinkorswim a my recommended brokers and guess how many people I actually got to signup to Sogotrade…wanna guess? 5….yup, Sogotrade has a referral program and 5 whole people have opened account there because of me, 2 aren’t even funded. Just because I absolutely nail price action sometimes doesn’t mean I create it. Good lesson.
Posted in Short Selling, Short Squeezes