How I Screwed Up Shorting Cannon Exploration Inc (CNEX), Down 40% Today, While My Readers Are Making Tens Of Thousands
Posted by timothysykes on Wed 14th of May, 2008 12:33:41 PM
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Where do I even begin on this one. Like my previous near-perfect call on fellow joke of a company pump and dump VRML, my readers made much more $ than I did. In fact, I lost a bundle shorting CNEX the other day at $6, admittedly too early/forced to due to the circumstances, covering at $7.20 yesterday, not wanting to risk a big-time gap higher/possible short squeeze today. Fortunately for me, there were shares available to short this morning so I reserved 500 and as I posted HERE, I planned on watching this one all day, shorting only when the pattern was to my liking.
After a slight gap higher, the buyers were drowned by sellers—we’re talking 10k volume here folks, nothing major—so I quickly placed an order to short sell with a limit of $7 when the price was $7.25 x $7.30…3 minutes later the priced had cracked big-time below my limit and it appeared I hadn’t gotten my execution. Damnit! Having been in this spot many times before, I knew it’s tough shorting into probable morning dumps so I lowered my limit to $6.50…nope, still no execution…20 seconds later and the stock was testing $6.
It was then I had the option of lowering my limit and grabbing shares there and while I certainly thought about it, the anemic volume and potential for a snapback rally didn’t suit my conservative TIM tastes. That’s something I’ll always regret for while I posted “it ain’t over yet” and “$6.16 is a good entry!”, I did nothing except check to make sure my readers had gotten or were getting short…good for being a teacher, pathetic for being a trader.
That’s when the stop losses really started getting taken out and within 12 minutes, CNEX tanked below $4, a drop of 46% in 30 minutes! Gotta love frauds, they really can fall completely apart within minutes and hours—much better than real companies!
So when people post stuff like “I like the short strategy, especially in this market but not on these crap companies” and TheLion.com deletes my messages when I post about Pink Sheet stocks, you know there’s something wrong with people’s biases. Definitely the result of everyone associating people who post about these turds with pumping them, PennyStocking hits that bias smack in the face—and that’s why it continually works, whether or not I screw up my own trades.
Cuz it doesn’t really matter how I do, I’ve made my $, now it’s time I pass this game onto you guys…trust me, it’s gonna be much more fun to see if I can create dozens or hundreds of millionaires, then I really will be like Archie Manning guiding my sons to the Super Bowl! So yes, I’ll sound like a used car salesman—I don’t give a sh#$ what anyone thinks—it’s my readers profits that speak louder than I’ll ever be able to…as I close out my instructional DVD by saying “you can do better than me!”…I mean that with every ounce of my soul.
Soon there’ll be a TIMtestimonials page where you can post all your gains and profits… kinda like a PennyStocking Wall of Fame…can’t wait til we have the first TIMmillionaire…god damn that’ll be a beautiful day…for now, take a look at some recent comments I’ve seen: (I have no idea if these guys are telling the truth, but given the stocks, entries and exits listed, I wouldn’t be very surprised )
Wes takes a 30% profit on this one
This guy made $21,000 on this play and supposedly $150,000 on my last 4 picks…yes I am looking forward to his donation
Even Jeff R. over at Elitetrader made a cool $1,000!
Anybody else out there with your stats, feel free to post ‘em, be totally honest, I don’t think you could’ve done any worse than me!
PS Now that I’ve just written this nice post, I see a stock SSBX which I had 2,000 shares to short, and which I wrote about this morning, tanking perfectly after a gradual fade off of some perfect sideways action…god damnit! Another one missed, wow, this is just getting emasculating. I gotta choose, teacher or trader? Def. having problems being both.
Check out my brand new DVD, ShortStocking - the only guide you'll ever need to profit from short selling!
Wish I could’ve gotten in on the CNEX action…had no buying power today :(
Tim,
Not sure if you read my earlier post, but I was able to short 1000 of CNEX at 7.25 and covered at 6.15 for a little over $1000. Yes, I was ticked over missing the rest of the drop, and also had shares of SSBX reserved and did nothing, but one of my favorite all time quotes from probably plenty of your Timreads is “Missed money is better than lost money”.
Short RCH 8.80
Tim, great call on UQM its fading very nicely. Anyone else out there with buying power really ought to take a look into it, shares were easy to borrow.
I did make 30% in 1 hour. I drew a support line since the stock had been pretty predictably up the last few days. The support was broken around 7.1-7.0. I should of shorted it then but I thought it might bounce off and keep uptrending…It broke and I went to short but it immediately went to high 6s. I said shit!, maybe its too late, I have a bad habit of chasing :(
It droped another 75 cents to 6.16 and I said fuck it, this is a company thats been pumped up 140% in the last 6 days, its got a good ways to fall.
Shorted at 6.16..Let the stock fall to 4.15-4.10..It clearly hit resistance there as it didnt fall for awhile. Hit 4.25, but fell back to 4.15. I covered, for an even 30%.
Muchas gracias Tim
That RCH short looks intresting…Any disccussion about it somewhere on Tim’s site?
RCH is an earnings play just a heads up..Its up 50% though.
MMGW dropping!
Hey Tim,
I’m buying the new version of the iPhone when it comes out this summer in order to trade while traveling (thanks to TIMprofits as I call them). I really want to buy your DVD, but will wait a bit if you’re going to release a newer version. That comes with the book, right?
mgw needs to go sideways first
evan no new dvd version because it focuses on timeless variables and understanding the players involved, just gonna add updates each year, 2007+ 2008 will probly be ready in spring 2009…yes it comes with an autographed book
iPhone, pshhh. *waves hand in dismissing gesture*
Tim, are the updates going to be sold as DVDs, or will they be downloadable from this site?
Jesseb, Just curious- what do you think the best way to trade remotely is? I’m not completely sold on the iPhone and I use both TOS and TD Ameritrade.
what do you think of HYBR.OB?
I have been getting a lot of faxes at work the last two days pumping this stock.
CNEX is breaking down again. I think this might be a good short to carry over night.
TIM - think it will gap down again tomorrow?
Ben, I’m short 800 shares of UQM at about 2.28. I should have gotten in higher, but I chased it down from 2.36 (gotta be more agressive). I was up about $50 or so, but it has bounced, and it just sitting on my entry.. We shall see..
Tim, I know I speak for the rest of the TIMinions, when I say I am looking forward to being a TIMillionaire. :)
Evan, personally I think if you’re going to be working the pennystocking angle, where you might need to short something at 9:15 and cover at 9:20…I wouldn’t try to do it on a mobile phone.
I’m sure some others here would agree…it’s not reliable enough for those kinds of plays. If you’re going long, maybe not such a big deal…but just the same one browser hiccup and you lose money.
I say laptop or PC connected to a hardline…I wouldn’t even use wireless, heh.
no idea how the dvd updates will be, this is a totally new world..i suggest u just get the dvd now with any profits u have, think of it as reinvesting in your biz so u can better understand all this stuff
Gotta agree w/Jesse, I love my iPhone, but it’s no trading platform. I have used it for trades, so it’s better then nothing, but you really need a laptop. How about a nice Macbook Air? (yes, I’m an AAPL shareholder!).
Jeff, I tried but missed the CNEX trade, so I got in on KRY at 1.05 like you did. Any guess as to how far it’ll go today? tomorrow?
Surprised how many of you are in on KRY. I won’t touch that until their rebuttal is answered, at which point I may try to surf it in whatever direction it goes assuming I catch it on time…
You posted that we shouldn’t mess with PDO or MXC because they are oil/natural gas plays, but i’m not really concerned. I’m pretty sure that my backyard has more oil than these companies and i probably produce more natural gas per day (especially when I eat Mexican). I’m short.
Bah, Airbook…overpriced, doesn’t even have ethernet. Not even worth $1700, rather just buy a Macbook Pro for $300 more and get way more than my money’s worth.
I’m in the market for a MacBook Pro as well, but I’m waiting for the next revision. They just gave them a bump a few months ago, but it’s about due for a full on revision.
If I’m not crazy about the revised version I’ll just buy the current version for less money. Had one for about 4 months at my last job, and loved it..
u misundertsand PDO and MXC are fine to short…for scalps, but don’t expect 20-40% drawdowns like u can easily get on pure pumps like LGDI, VRML and CNEX
I think Wes is full of crap. YOu shorted 10K cshares of this d-sh*t name? PLease dude, nice try. Who gives you locates on this garbage? There are no holders even listed on Bberg.
I decided I have to start getting up earlier…fuckin’ sucks - being on the west coast and trying to trade :P
You guys all get to sleep and I gotta get up at 6:00 if I want to get in on the action…doesn’t help that I gotta get on the train bound for work at 8am either.
Hey Tim can I borrow some money so that I don’t have to work and I can just focus on trading? :P
Sit yo ass down!
hater, please don’t make me laugh so hard, bloomberg? LOLOLOLOL i’ve never used bloomgberg for any of this stuff, u stick to your snobby coked up world and i’ll stick to the gutter trash. seriously, u’ll just never understand. your too snobby, stuck up and narrow minded, but thats ok, do what works for u. go play google for 5 points
Mark, not sure just glued to KRY to see what happens…it’s got to do something at $1.00, that’s key. If it breaks that, which I’m looking for, it could go back to .60. New Macbooks are rumored for this summer, but full-revision just took place on Feb. 28, 08.
Go to macrumors.com…anyone go long CPSL this morning and ride the tremor train? Wondering when that will slow down.
ESLR looking good right now as a long position…all solar stocks are up huge…CSIQ & FSLR are breaking their all-time highs … ESLR is breaking and holding above a recent high.
PDO IS BREAKING DOWN PERFECTLY. WHATS UP TIM,DO U STILL THINK COMMONITIES PLAYS ARE IMUNE? ANY STOCK THAT GOES UP 300% IN 20 DAYS IS GONNA DROP HARD EVENTUALLY. ITS ALL CHARTS PATTERNS AND PERCENTAGES NOT THE STOCK SECTOR
ALL CAPS ALL THE TIME, COME AND GET SOME LIDZ.
VSCI IS WEAK, TAKE IT DOWN!
I should have said redesign rather then revision. The February revisions were a bit more then speed bumps, but not the redesign I’m waiting on. I can wait to see what happens at WWDC and then probably till the next Macworld. I’m in no hurry.
No where did I say i shorted 10k shares of anything…And if I did it was a typo.
Yes, I did make 30% on CNEX but i didn’t short 10k shares, it was no where near that amount. It was my entire TOS cash amount but thats hardly anything to most of the guys on here.
Like I said, I’m using a little bit of my signon bonus to trade with. Most of that money is in safer plays, AAPL, RIMM, POT. And the rest, what I feel safe with speculating, is in TIMpicks.
Why would I lie? I have better things to do all day than attempt to piss people off on message boards.
SIX spiked from 2 to 2.45, now back at 2.2
Just out of curiosity, I was looking at CNEX’s chart history and it looks like back in October it spiked to 225 and then…maybe even in the same day, it dropped to 2.25 a share…is that even possible? And if so, I can only imagine if someone had the cash available to short into that…
YOu mean the world of true professional traders?? Ill go trade my S and Pfutures, making millions in a year, you keep scraping the gutter
Sometimes I scrape your moms gut…on the inside.
LUNA & MVIS are on the verge of breakout…watch them into the close
lol… uh, I mean LOL!
Tried to short CNEX early morning, couldn’t find a single stock on interactive brokers. I’ll fund my TOS Account right away, so frustrating….
On other story QTWW, would you dare holding overnight, I am short 2 000 shares, considering closing a part of the position and leave 500 shares overnight.. Any thoughts tim??
Tim, I’m watching UQM, and all I keep seeing are 100 share orders moving the stock right where they want it. Is that just plain old manipulation at work?
My mom recently passed away JEsseb, but thanks for the visual you jerkoff. Ill be thinking about all of you pikers while im on the boat next week, poppin bottles w/ models and smoking some nice cubans.
I opened another short on CNEX at 3.0..I’m holding this overnight, I figure it will only gap down. Seems like all the suckers have caught on.
It’s true, he smokes Cubans.
My mom recentlypassed away JesseB, but thanks for the visual. I will think about you when Im on the boat next week in the Hamptons, poppin bottles w/ models, with a nice cuban cigar.
He pole smokes me all the time.
CPST breaking down