Archive for the ‘Patterns To Short’ Category
Behold The Latest Perfect TIMalerts Short: Mechanical Technology Inc. (MKTY), Down 30% Since My Alert
Another day, another huge TIMalert victory—this time it was calling, profiting, blogging, predicting, you name it, MKTY is down 31% off its high on the day…$5.50 to $3.78…so far. I profited, TIMalert subscribers profited, and just about everyone else couldn’t find any shares to short—welcome to the TIMalert biz model. Good things come in low float packages and everyone wants to reserve shares to short…TIMalert subscribers get the email/post on the subscribers-only website at 8am, everyone else gets the info later, usually after all the shares have been reserved.
Here’s the story of a pump named MKTY as told by my alerts—this isn’t magic, it’s just how pump and dumps act…it’s about time people gave them the respect they deserve cuz they’re just so damn predictable!
Posted on TIMalert subscribers-only-website at 8am today:
MKTY is my #1 potential short today (already reserved 1,500 shares to short or the day), especially on any spike, I was early shorting yesterday, but played it safe and even managed to escape with a small gain…TIMalert subscribers know all about it as the subscriber-only website had over 100 comments yesterday (new record!)…also discussed in my blog post last night…this is a pure pump, but it’s only a $25 million company so it can go further than you think possible…yesterday was 2nd big up day, if this pattern holds true, the 3rd day is tough for it to finish up big, let alone up at all…of course the pattern h as mutations so maybe we’ll get a true Supernova here…at the very least, I’m hoping it can squeeze some early shorts past the the key $5 resistance
Why I Just Shorted A Sleepy Company Called Zynex Inc. (ZYXI)
So much for Thinkorswim disallowing the shorting of OTCBB stocks as I reserved 2,000 shares of ZYXI to short early this morning (latecomers got no shares as TIMalert subscribers grabbed the all borrowable shares…
Given that its chart was eerily similar to similarly crappy company UBHI, which dropped nicely off its highs, I tried shorting into the morning panic around $3.30, but discovered my Thinkorswim rep had mistakenly inputted 200 shares instead of 2,000 shares into my account so I had to login to their handy chat program and fix that mistake. Unfortunately, morning panics are quick so by the time we got that straightened out, the stock had tanked all the way to the $2.90 area…bastards…but manual ‘fat finger’ mistakes do happen, you just gotta accept it…
Uh Oh, Guess Who’s Now Exhibiting The Perfect Technical Breakdown Pattern?
Memba 4 days ago when I featured Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) as perfect technical breakdowns/a short selling pattern I looooooove?
Well, since then those two turds have dropped 16% and 33%, respectively.
Forget all the BS media noise, rumors, tips, fundamentals, screwed employees, just all the shitty things/petty human waste products that are a part of every day Wall Street and focus on the charts. Can you guess which financial company is showing the EXACT same pattern?
American Beauty: Two Stocks Exemplifying Perfect Technical Breakdowns
You know me, I prefer trading frauds and pump and dumps to real companies, especially real financial companies, especially really f#!$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!
Three Small Profitable Trades For TIM; Three Giant Gains For TIMalert-kind
Yup, posted about another couple of trades rather perfectly, even while I personally screwed them up a bit…this has gotta be some kind of record, what is it 10 years of this crap now? Welcome to my life brothas!
Wednesday: After a morning runup, I saw HYGS fading a bit—price and volume-wise, so I pulled up my Thinkorswim live chat to enter in my order (reserved shares in the morning, but just put a note on my account) and guess what I saw, I had shorted 2,000 TGC at $3.49 (thinking it’d never get up that high, I was too lazy to put a note on my account/have to get the chat window open again, the sequel to my original VRML mistake) and now that stock was at $3.75….friggin moron!?!?!?! Wasn’t a bad short in the overall scheme of its chart so I told TIMalert subscribers I’d hold onto it and see how it’d perform, even if it was an accidental trade. Also told em, I was watching HYGS for a possible fade since at $2.30ish, it was only up 5 cents on the day and sellers were looking more determined (forming a wall of sellers with fading buy volume)…
A few seconds later and HYGS has broken $2.30 so I put in the order to short 2,000 with a limit of $2.27…got $2.29, whewww….emailed TIMalert peeps (members-only website coming next week so you never miss anything) by saying “i think if it takes out 2.28-2.25ish, it can go under $2”…just as that was breaking down a bit, TGC pulled back too so I decided to play it safe, covering at $3.44, a 5 cent/share gain, but basically getting me out of a trade I never meant to be in.
Trust No One But Respect The Action: 3 Oil Breakouts & 4 Breakdowns
Ahh you gotta love it when new players enter and old ones retire—traders AND stocks. The key is being able to take what you can from each and then move onto the new hotness…
With that thinking, I loved CNEH—it was a weekend affair—but its proving itself to be too slow to continue to interest me (that’s right, I have commitment issues, I said it), CHQ and GST have been trying awfully hard, but their volume just plain sucks. Traders are fickle, we gotta have big moves and big volume…
So check out the 7 charts below, 3 of them are the new hot plays
Breaking News Rumor: Trader Monthly / Doubledown Media Flat Broke, Forced To Turn Off Air Conditioning
Wow, the immature prick that I am, I’ve dreamed of this day ever since their sick twisted son of a bitch editor-in-thief Randall “The ideal reader is 29 years old, making $400,000 a year, and spending all of it.” Lane’s smear campaign of me waaaay back in early 2007, but now it looks to finally be coming true. Rumors are flying that after losing an arbitration case with Private Air (who after “buying” their magazine, they allegedly stiffed), now they are flat broke and have turned off the air conditioning in their midtown Manhattan offices!
Karma’s a bitch, huh Randy?
Short Selling Games: How To & Not To Short A Morning Spike
Each of the past two mornings, I’ve shorted Uranium Resources, Inc. (URRE)—mainly cuz it’s up so much and its horrendous long-term chart and level 2 price action tells me there’s a ton of bitter shareholders looking to sell on these bounces. This 100% stock price spike naturally has brought in the short sellers, many of whom are complete morons, thinking it’s gonna collapse at any moment and I gotta thank God for their existence cuz their premature entry and inevitable squeezing is what causes these morning spikes.
Yesterday, I wisely waited for a nice wall of sellers to enter—meaning there was plenty of overhead resistance, even during the spike, shorting 1,500 at $4.05—even though it was off the day high by 20 cents…I wanted 30 cents of downside and got some of it, but when buyers seemed determined in the $3.85 range, I said to my self “can’t be greedy, this isn’t an I deal play” (it wasn’t negative on the day nor the afternoon). Covering at $3.90 it was a decent $200 gain.
Why I Shorted Probable Fraud Hydrogen Hybrid Tech Inc (HYHY) & Think Its Headed Lower
After initially writing about why I’d bought HYHY right before the market close for an overnight long yesterday, now I’m writing about why I shorted the same stock right before the market close today (welcome to trading). After all, I’d already taken my poorly timed $300ish profits—leaving $500 on the table…life could be worse–and I have no allegiance to it whatsoever—it’s just the latest probable fraud to have sent out a massive spam mailer that sucked in naïve greedy buyers.
You know what, now that I’m short, hell, let’s call a spade a spade—it’s a total fraud, as I outlined in my original post. But that’s not why I went short…
I shorted 2,000 shares at $2.31, emailing TIMalert subscribers with plenty of time before the market close—already up 6 cents/share on my position—because this pile of manure exemplified the classic “falling off a cliff” intraday pattern that’s usually the end to so many runs, meaning the market makers couldn’t prop it up anymore as all, or mostly all, of the spam buyers had already bought, leaving a massive supply-demand imbalance that could only be resolved with lower prices (that might attract some buyers).
One Of The Worst Trades Of My Life & Still A Solid Profit: Behold PennyStocking!
You know how I always say wait for ideal opportunities? Well today was one and while I made $700, I screwed it up completely—latest proof that if u stick to these kinds of plays, its sooooooooo tough not to make money:
When a piece-of-cow-dung-type company (just look at the chart, little research other than that needed) like South Texas Oil Company (STXX) spikes up…for any reason…you gotta get interested in shorting it. When similarly foul smelling stock promoter Lebed is involved, the BullShitometer goes off the charts and you just gotta reserve shares ASAP
Well that was the thinking that made me short 1000 shares of this stock yesterday at $4—mistakenly believing I got a good execution since the volume was pathetic and the bid was $3.40, I figured I’d scalp it for an easy 30-50 cents/share…unfortunately, the bid caught up and shorts like me got squeezed to the $4.50 range (thankfully the company is so bad, even stock promotion couldn’t get it up much more than that!). Displaying some newfound patience/conservatism, I controlled my losses and covered at an average of $4.22, a $250 loss, but not bad considering my impatience/stupidity at getting in in the first place (I love how several PennyStocking DVD students commented/emailed/IMed me I was wrong for getting in—at least I’m a good teacher!)
This Is How A Fraud Trades: Laud Resources Inc (LAUD) & MyECheck Inc (MYEC)
That’s right kids, it’s time to play another round of “This Is How A Fraud Trades” Cue the music.
LAUD Resources Inc. (OTCBB: LAUD) is now woth over $200mil and has revenues of $1 mil…and that chart, as you all should know by now, is a classic classic manipulation scheme…company will say “we don’t know who’s manipulating our stock, we’re just innocent victims”…and then do a financing at 70% discount to pumped up prices…god I love this game!
Why I Shorted Turd Of A Company PokerTek, Inc. (PTEK)
If you’re familiar with my short-biased PennyStocking trading strategy, or watched the latest episode of LiveStock (in which I detailed this setup), it’s not hard to tell why I shorted 1,000 shares of PokerTek, Inc. (PTEK) at $4.69 right before the market close on Friday.
Not only was Friday its first down day after 5 straight—agonizing for early shorts, opportunistic for later shorts—up-days, after a blatantly-obvious-typically-bankruptcy-coming-type 50% mid-month drop in May, if on Monday we get a morning panic (which seems likely considering Friday’s price action with hugely fading volume due to the gradual realization by bitter long-term shareholders realizing they’d better take this bounce as an opportunity to the hell out and aggressive shorts to get in) that takes out Friday support of $4.50ish making $4 a likely downside target, which if the sellers can take out the probable stop losses there brings up $3.80ish, if you take a look at the reasons for the runup, you’ll see it’s no different than f#@%ed-company-last-chance-at-raising-capital-through-hype-type plays like IPIX, CAFÉ, VION and eerily-similar VRML of the past, all of which had been great piece-of-3-day-old-smelling-dung-type stocks to short into these message-board-rumor-floated-fueled-type plays.
My Latest Successful Scalp Trade: PokerTek Inc (PTEK)
Shorting a spike like PTEK may sound simple—stock up big on hype and fluff news, me think it go down, me short—but outside of snakeoil world, there’s a few more real world variables to consider. Of course, when I shorted 1,000 shares into a spike at $5.60 (already off its highs though, reducing my risk of further spikage) this morning, I thought it would go down—there was a wall of sellers behind me, buying volume had diminished and if it could take out morning support at $5.40, it could really tank and perhaps go negative on the day cracking $5.15 and then it’d be tough to get much past $4.80-$5 considering that was yesterday’s support.
Buuut it was still green on the day, it was a morning short going for a quick reversal so it wasn’t ideal, and there were big block buyers. Oh yeah and there was that little thing where I have about a dozen writing assignments due in the next 2-3 days—blog posts, AOL & Yahoo articles and LiveStock scripts—so I wouldn’t be able to watch this all day like I typically do.
How To Short Sell Penny Stocks Safely: Three Quality Short Trades
Judging by the posts, we’re all making money lately. Good, I don’t know of any other site with such high percentage of people profiting…especially when none of us are very smart or experienced. I think it’s cuz my impatience has taught you guys to take your profits or losses quickly cuz you’re trading the most volatile stocks around. Yes, you should let your winners run, but that’s not as important as knowing you should never ever let your losers run, no matter what your meaningless little mind thinks. (If I don’t cut your egos down to size, the market will, which do you prefer?)
First up, I shorted 500 NTI into the market close of its first truly down day on Monday. Volume had faded, Superman’s posts on TheLion.com stopped being responded to as often—basically the hype was dying down so my $13.70 entry point looked ideal. Pre-market Tuesday brought the usual 100 share painting-the-tape games, up $2, down $1, all meaningless. When the stock opened, it was down 20-50 cents, the range being the ridiculous price spread on such an illiquid stock. I wanted it to crack $13 or at least get close so I put in my order to buy at $13.01, which woulda been a $350 profit…never got there, not even close. A massive (sarcastic) buying wave of 3,000 shares took it up to the $14.50-$15 range and I thought about covering for a big loss…but I waited—it was just 1-2 orders! Volume faded and the stock gradually dropped, when a big sell order came in, I decided to get out and not risk another massive (sarcastic) buying wave to squeeze me for $1/share…no, I covered at $13.77, for a $50 loss. Good loss. No, it was a great loss. The rest of the day volume continued to be anemic, as it was today, very few orders executed below my price, now it’s just consolidating, could go either way…great, great loss cutting.
Lesson: If a big gain does not seem likely, don’t worry about being up or down a few cents, just get out—you don’t want to risk a big loss when the reward ain’t there.
Nobody Told Kentucky USA Energy Inc (KYUS) That They Were A Scam…LOL
Seriously, check this absurd SEC filing out and try not to laugh…sounds like somebody’s getting investigated…
Form 8-K for KENTUCKY USA ENERGY, INC.
30-May-2008
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| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| July 23 | MKTY | $4.73 | $5.40 | $187 |
| July 22 | MKTY | $4.10 | $4.28 | $240 |
| July 21 | ZYXI | $3.03 | $3.18 | $130 |
| July 15 | MNLU | $6.37 | $6.73 | $340 |
| July 11 | IDAE | $2.27 | $2.49 | $630 |
| July 8 | ERII | $11.29 | $11.00 | $162 |
| July 3 | TGC | $2.14 | $2.39 | $471 |
| July 2 | HYGS | $2.15 | $2.29 | $260 |
| July 2 | TGC | $3.44 | $3.49 | $80 |
Total: $22,457 (
81%)
