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Posted 3 months, 22 days ago.

A Short Seller’s Dozen: What Stocks Get Pumped, Must Come Down, Usually

Tags: Breakouts, Hot Stocks, Impatience, Potential Plays

VRML Short 1,300 @$3.75
LGDI
SUNV
Getting up bright and early, I reserved shares in all three of these stocks to possibly short today, not knowing which I’d actually short. LGDI didn’t even trade for 5 minutes and when it did, it moved slower than an under-cooked lobster. SUNV didn’t breach the key $1.20 level until the afternoon (when I had no trades left), so it was all about VRML.

I wanted to short into strength cuz it was a classic short covering rally from yesterday’s $1.75 pullback off the highs…given the magnitude of the declines and that it’s still up 300+% in a few days—on an ill-researched story thinking this near bankrupt company will do anything but go under—meant short sellers would be aggressive. Afraid I’d miss the probable pullback, I jumped the gun too early, shorting 1,300 shares at $3.75…as I watched it hang around $3.90 x $4 for another 30 min, I wasn’t very worried as the big buyer blocks were only on the bids—the wall of sellers at $4 never in danger of cracking—a clear sign of pumpers trying to scare up buyers/short covering…inevitably, the volume faded, the bids disappeared and the stock spent the day chomping gradually away at its early gains, few buy orders at the ask. I’d call it a perfect crack of sideways price action in the $3.60 range, but it still managed to finish up on the day, so it’ not totally perfect…just yet.

Despite my poor timing, I’ve got a nice $380 profit so far, I let it ride overnight cuz I think it goes under or around $3 today or tomorrow, possible big stop loss panic if it take out $3, might get to cover at $2.60-$2.75ish if I’m lucky.

VNDA
Nice gradual fade, but not my ideal PennyStocking short, too tight a chart/variables not fraudulent enough to squeeze one in

BDCO
Everyone’s goin crazy over an 18 cent gain, leme know when it gets to $3, until then jewwwww noooo

BWEN
Perfect perfect breakout, too bad it was Cramer induced aka false—remember GTE’s Cramer induced breakout took a 25% drop after before breaking out due to commodity prices, not any guru

COTE
Probable gap up and possible multi-day runner, couldn’t touch it, pattern day trading rule, triple jewwww yahhhh shout out to the SEC on that one!

VSCI
Getting steep up there in the nose blood seats, when will it end

PLM
Multi-year breakout, but it’s ever so slight—same vein as failure of an impressive breakout ASIA and it’s AMEX, noooo jewwww noooo

GTE
Not such a gradual breakout anymore, making me sing: gimme gimme more, gimme more, gimme gimme more (SEC quarantined trades that is)

FOUR and KYUS
Two pumps getting tired of pumping…what gets pumped must come down

PS
My apologies for not responding to everyone’s individual stock requests, too many these days, keep posting, if it looks interesting to me, I’ll post my thoughts in these pre-market watchlists

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Related Reading

Timmayyy’s 20 Totally Tubular Tickers To Trade Through Thinkorswim Today To Thursday May 7, 2008
Manipulation Monday: A Dozen Stocks To Watch, Some Breakouts Look Interesting June 16, 2008
Manipulation Monday: 8 Stocks That Interest Me August 4, 2008

124 Responses

Pages: « 1 2 [3] Show All

101YngvaiMalmsteve(TIMBUCKS: $586)

May 8th, 2008 at 12:12 pm

I don’t get why some of you guys keep wanting to short any penny stock that happens to be up. I don’t even have Tim’s DVD and I know just by reading his site enough not to do that.

Also, some of you guys want to short earnings moves. That’s risky business. If you’re using the TOS software, look at the bottom of the graph. If you see a $, then it means there was an earnings report. You can also look at the “Live News”, and you can see if there was an earnings report.
102Jeff C

May 8th, 2008 at 12:12 pm

Davey when you’re right, you’re right man…just researching
103Goose(TIMBUCKS: $34)

May 8th, 2008 at 12:14 pm

Guys, I learned a good lesson today not to short earnings. Please dont be like me and be stupid. Stay away from earnings. I beg you.
104Jeff C

May 8th, 2008 at 12:14 pm

I’ll go back to watching my Magnum PI….I may re-short MESA if it breaks .85…
105YngvaiMalmsteve(TIMBUCKS: $586)

May 8th, 2008 at 12:14 pm

Oh, and don’t chase trades. If you missed out on a strong breakout move, or missed out on a good short (like VSCI), then don’t chase it. That’s a good way to lose money.
106Jeff C

May 8th, 2008 at 12:15 pm

TIM- can’t log in and haven’t received a password e-mail for 2 days…no TIM Bucks pour moi..just FYI
107burky(TIMBUCKS: $29)

May 8th, 2008 at 12:23 pm

Imsmith - go to en.gravatar.com and sign up an account. And, don’t worry about what nickname you pick. I wasn’t able to get burky but it looks like it links on your email address. And, then it just showed up for me (even in past posts). That’s Jack btw … my son.
108JensGould(TIMBUCKS: $53)

May 8th, 2008 at 12:24 pm

Tim good call on not getting in until below 3.4 i got a little antsy. What can I say I’m an addict.
109burky(TIMBUCKS: $29)

May 8th, 2008 at 12:28 pm

Oh, and I think I logged off of Tim’s site and then back … not sure if that was necessary.
110novalis78(TIMBUCKS: $52)

May 8th, 2008 at 12:39 pm

Tim, what is your take on SYNM..someone talking about Go Zone Bonds…
111Jeff C

May 8th, 2008 at 12:40 pm

I never had to log back on in the past, but the new site requires it for TIM BUCKS apparently
112timothysykes

May 8th, 2008 at 12:45 pm

bob, yes u had a bad entry, but why cover so quickly, hardly any buying volume, it was just a little bounce, still plenty of big sells

yngvai, exactly, i dont know who these people are, but they’re assuming waaaay too much about this game….just did a new post to correct their asses:

http://www.timothysykes.com/20.....-required/

lm http://www.gravatar.com

jeff email admin@ for help

noavlis i could care less about SYNM an the other 99.9999% of microcraps not volatile enough for me
113Jeff C(TIMBUCKS: $59)

May 8th, 2008 at 12:47 pm

Thanks Tim, the prob was case-sensitive username…heads up on that everyone
114Jeff C(TIMBUCKS: $59)

May 8th, 2008 at 12:51 pm

YngvaiMalmsteve, great note on the dollar sign on TOS’s charts, beautiful tool!
115wes

May 8th, 2008 at 1:06 pm

Tim, one of your picks, UTVG, hows that still looking for you?
116Dan_O(TIMBUCKS: $53)

May 8th, 2008 at 1:09 pm

Hmm… every time I try to load the new post it aborts. WTF
117Dan_O(TIMBUCKS: $53)

May 8th, 2008 at 1:14 pm

Anyway, SUNV just released a fluffy press release that is just bursting at the seams with engineering gibberish.

It’s up a quarter, definately not a TIM play yet.
118RGIlles(TIMBUCKS: $18)

May 8th, 2008 at 1:16 pm

I can’t open the new post either
119Blithe(TIMBUCKS: $49)

May 8th, 2008 at 1:27 pm

I love to watch this stuff come down. Is that so wrong?
120lmsmith

May 8th, 2008 at 1:35 pm

Thanks Burky
121will_the_thrill(TIMBUCKS: $41)

May 8th, 2008 at 1:38 pm

hey, ivgot, did r u going to pick up idmi, see it’s at 2.07
122timothysykes

May 8th, 2008 at 1:46 pm

does the new post work u guys now?
123burky(TIMBUCKS: $29)

May 8th, 2008 at 2:48 pm

VSCI - anyone know anything about flag patterns? I recall reading from Zanger’s site that they’re bearish/bullish depending on the direction of the preceeding pattern - but do they mean anything intraday?
124ivegotstylekid(TIMBUCKS: $183)

May 8th, 2008 at 4:50 pm

picked some IDMI at 2.07, been checking out the boards for some future pumps. It’s my first idea without any suggestions, so I’m not sure if I’m looking at the chart correctly. It seems to always hold the low 2’s and rise up for a couple days. Also saw something on the lion about a future pump on the 14th but who know how reliable that is. I’m trading it on my WSSurvivor Account first. Only have $300 sidelined on my Etrade account and I’m under my 90 restriction. Let me know what you guys are thinking on this.
Thanks,
styles