TIM $14,319 (down $19 on the day)
Overnight Short 200 shares RIGL @ $23.70
Overnight Long 500 shares CACN @ $6.07
Surprisingly few trade setups (aka none) going into today gave way to a few afternoon opportunities. I take pride in getting ahead on day’s like today—remember most people/indexes are fully invested/bullish, you don’t need huge gains to get ahead, as long as you don’t try to force opportunities.
Normally I ignore biotech movers, but when they triple or quadruple on speculative news (a positive phase 2 trial is not the same as phase 3 or FDA approval), I get interested. I waited all day for Rigel Pharmaceuticals (Nasdaq: RIGL) (intraday chart) to crack the 2-day low of $25.50, the sideways price action at $25 and morning lows of $24.50 by being extra-conservative and waiting for a crack of $24 before shorting. That way there’d be little chance of a fakeout breakdown. Unfortunately, when the stock took out $24, it tanked very quickly and after missing 2 times with limit orders at $23.90 and $23.86, I gave in and shorted 200 shares at $23.70.
A few minutes into my short, I was up 60 cents/share and thought about taking my $110 or so. But no, I was determined to have more patience and that damn SEC rule limiting day trades was obviously in the back of my mind, too. The stock bounced into the close, making me less than enthusiastic about holding this overnight. Yes, the chart pattern is broke and experiences tells me, there’s another $1-$3 of easy downside here, I’m guessing it will also include a spike/lots of spiking along the way and with my account so small, I gotta protect myself from the risk of large potential losses. I’ll probly cover pre-market for small losses or gains—at least it won’t be counted as a day trade!
I bought 500 shares of thinly traded interCLICK (OTCBB: CACN.OB ) at $6.07 due to its PICTURE PERFECT BREAKOUT, the apparent lack of much downside (stock based nicely just 50 cents lower) and the fact that they are the fastest growing internet ad agency in the world (grew 182% in October, double the growth rate of their closest competitor), now also the 10th largest in the world and their network reaches nearly 100 million unique US visitors/month.
Yeah, this all sounds very impressive, right? Well, their revenues are still tiny (just got acquired, so latest revenues of $1 million or so just represent one month’s worth, the quarterly pro forma number is more like $3.5 million) and the marketcap still ginormous ($206 million), but losses are minimal (under $1 million) so the future looks bright. More importantly, it’s so thinly traded, people who get interested will do some digging (like I did) and if they come to the same conclusion as me and buy, their buying will help the price even more and so on and so on…I have no target as this is a breakout, we don’t know how far it’ll go. I’ll probly look to make $1/share, but I doubt I’ll have patience to hold that long…
Hindsight is easy:
(Nasdaq: SCON), picture perfect afternoon breakdown around $7.60-$7.50, it’s already down a bit in the past few days, so I wasn’t looking at it very hard, guess I shoulda woulda coulda been.
(NYSE: LDK), picture perfect double top (look at the 3 month chart) this morning in the $75 range, woulda been risky—was looking to do 50 shares—but coulda woulda shoulda been $6/share
(Nasdaq: ESLR), picture perfect 2 month double top (chart), time to short would be this afternoon on the morning break at $15.50, woulda be tough since it hung around there for an hour or so (chart), but it was a nice 50 cents going into the close and another 25-50 cents on the probable gap down tomorrow. Solar is hot, but it can’t compete with technical analysis bitches!
Obviously lots of stocks down today, which coulda woulda shoulda made for great short selling, but that’s all market related, aka less predictable (not to mention I can’t day trade freely), so experience has taught me it’s best to stay away. It’s a difficult concept to understand and even more difficult to practice, but short selling stocks like SOLF, SYNA, FSLR, BIDU, ISRG, JRJC, LULU is really very dangerous.
Fun Links of the day:
My new speaker profile page at CAA (contact me if you’re interested in having me speak to your group or at an event, I love public speaking and I promise I can make finance fun to listen to)…I’m definitely their least famous client
The 67th Festival of Stocks, one of my articles made the cut!