‘Tis The Season To Be Patient, Learn To Wait For Worthy Opportunities

November 20th Review

TIM $14,376 (up $57 on the day) No Positions, 100% Cash

I emailed the winner of the tie giveaway, but no response yet, so I might have to pick somebody else…

Yet another case of Wall Street greed, leverage and lyin

g
. I might be more cynical than an old man returning cold soup in a deli, but how many other companies out there have similar problems? You only find out about this stuff after it collapses—very scary indeed.

It’s sad day when Apple forces a blog to shut down. Apparently, this blogger liked leaking rumors of new Apple products and that was not okay with Big Technology Brother. Disgusting. Maybe I should expand Freedom of Finance to Freedom of Information

Read my latest AOL article, my detailed take on TheStreet.com (Nasdaq: TSCM)

Yet another boring day, I’m getting lots of emails asking why my daily gains/losses are so minimal, I’ll tell ya – there aren’t any worthy opportunities, so I’m trading very conservatively, in a near-pointless attempt to claw my way to the magical $25k mark, so when there are plays, I’ll be able to day trade freely. This week, I’ve been dicking around with small scalps and speculative plays, but if I better followed the strategies detailed in my DVD, I’d be riched for one, but, more importantly, I wouldn’t be making any trades whatsoever. You see the best opportunities stand out above the noise, there’s none of that going on right now.

(Nasdaq: CPST) – a good lesson as to why you shouldn’t trade on the news, instead wait to trade on the patterns created by the news. Sure, the company’s news last night was good, but the markets don’t seem to care, so neither do I. TIM Lesson: A company could have the best news/story in the world, but if nobody notices (as evidenced by a surge in trading volume and stock price) then it’s irrelevant. Act upon market reactions, not upon your reactions to the market. (c’mon, how good does that sound?)

(Nasdaq: TSCM) – wrote last night it probly wasn’t tradeable, but when a stock breaks out perfectly and the next day it fades right back to the breakout point on low volume, that’s an easy scalp to buy into, praise allah. I bought 250 shares at $14.71 (was lucky I caught the bottom, but wasn’t so sure at the time) and sold them 30 minutes later at $15.01. Nice 2% or $60ish gain with little risk and as you see from the closing price 63 cents higher, my timing stunk as usual. I wanted to hold, but I also knew I had an article coming out on AOL about the company and didn’t want to hold shares then (since when I wrote it last night, I didn’t think I’d take a position and I definitely didn’t want to deal with any front running issues)

(OTC: CACN.OB) – that quick $1.50ish tank on low volume this morning is why these kinds of plays are so risky to hold overnight. Now you see why I get scared out of positions so quickly.

(Nasdaq: PEIX) – watching it, but this thing jumps all over the place, still too scary to short or buy

(NYSE: PIR) – up nearly 40% because they got the media to believe they’re turning around (I’m not buying it!), facts don’t matter, only perception. The ball is in their court, not worth shorting considering everybody loves a turnaround, even if that turnaround turns out to be crap (remember Six Flags went from to $2 to $12 on optimism, even though now it’s back down to $2). TIM Lesson: Never underestimate the power of optimism in the stock market, as misguided as it usually is.

(Nasdaq: FRPT) – nice gap this morning, scary gradual downtrending all day long, possible January effect play (FYI January effect is when beat down stocks rebound because they’re beat down too much at year end due to tax loss selling (people like to take losses in the current year so they can deduct them for taxes))

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