Today’s Trades, Another Short Selling Lesson and my FOX Business Debut!

TIM $14,050 (down $17 on the day)

No positions, 100% cash

Well, today finally looked to be the day that my newfound friend QSC would throw in the towel and crack

wide open to reward all the patient short sellers. After an initial spike at the open, it struggled for nearly two tedious hours to hold $4.60. Midway, I gave in and shorted 500 shares, (at $4.60) thinking once it cracked that level, it’d tank bigtime.

Here is a short PDF of this post.

But I was just dreaming—when the crack occurred, the price slumped a stupendous 7 cents/share! After all, the stock held $4.50 all day yesterday so how could I be so confused? Well, confusion goes hand in hand with trying to force opportunities when none exist.

When the stock bounced back to $4.60, I panicked and covered my pathetic position at $4.6052 for a total loss of $17—after commissions. Useless entry, horrible exit (as the bounce above $4.60 was very, very temporary)—this is a trade I should never have been in. The stock finished slightly lower (it’s the afternoon fade that’s more predcitable genius!) and will probably continue to be a good short in the coming days, but the price moves too slowly for me and I really do hate shorting AMEX stocks, and more specifically AMEX biotech stocks, due to the decreased liquidity and increased risk of intraday spikes and short squeezes.

But I just wanna make some $$$. Shut up , you baby! Gotta learn to stay away from the market sometimes. I’ve been getting some emails from people thinking that I, being a short seller, would love this kind of market action, but my short selling strategy is different than most. I don’t enjoy bear markets turning slightly bullish or bull markets turning slightly bearish—there’s not enough conviction either way. What I need for my shorts to work best is a raging bull market or raging bear market. In both scenarios, stocks can really spike and fade fast. I know, I know—it’s strange, but contrary to popular belief, shorting into excessive strength works.

So, right now, this kind of market action doesn’t help me much and nothing looks particularly interesting. CSIQ stands out for its continued weakness, but given the regularity with which the company announces positive news, I’m scared to short it. If I had any guts, I’d buy JRJC into earnings tonight (I really feel they’re gonna have a blowout quarter), but it’s not my typical kind of play and TIM’s assets are too little to chance it—even 100 shares could end up being a $500 loss.

Cheer up—I’ll be making my FOX Business Network debut tomorrow on two segments sometime between 6-7am and 9-10am EST tomorrow so def. try to tune in! And I’ll be particularly indebted to anybody who posts my segments on YouTube because I don’t even get the channel! (Think free autographed book)

To inspire you to want that autographed book, check out my latest book review .

 

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