TIM: 11.06.07 Review
Posted by Timothy Sykes on Tue 6th of Nov, 2007 02:56:17 PM
Tags:
TIM $12,805 ( profit of $420 on the day)
Overall markets flat–a lot of bearishness in the morning turned into bullishness by the end of the day=boring. Potential plays from yesterday :
VDSI, WIND, NUAN, SCON, CRDC, CROX=boooooring, no worthy plays whatsoever, still watching all of them…LULU surprisingly put in little effort to bounce, look for further weakness and I’d like to buy under$40 (
hopefully we get some panicking, but I doubt I’ll be that lucky)…SYNA=very good late day strength, I’d love to buy it, but it’s pricey and my tiny account is hindered by the Pattern Day Trading Rules; only buy on a breakout of $61.72, preferably a gradual rise as a spike could indicate a double-top.
TNRO= boring, MXOM=up slightly (but not enough to make it worth TIM’s wHile), CCGY=failed breakout attempt, NNRI=spike and fade (would’ve been a good gap play), TWRT=spike and hold, should continue to be a good mover, wish I could short it!
CYGT showed some nice volume throughout the day, its .005 cent stock price gain means $250 in unrealized profits for TIM= nothing to get excited about, but more importantly, the bid rose from .06 to .08 meaning I can sell and breakeven (probly couldn’t sell my entire position though). Still a waiting game for the IAAPA conference next week…
The main plays today obviously dealt with the Alibaba IPO hangers-on=BIDU, GSOL and SOHU. Since I look to play the most volatile stocks, GSOL’s multi-point gap-up (compared to fractional gains for the others) made their stock my prime target.
I went in with the thesis that this stock had runup over the past few months all on Alibaba hype, hype that is now over. Sure, they have a decent little business, but the stock is rather expensive with a forward PE in the 40 range, while only growing at 20%/year. Sure, Alibaba has a ton of cash and might buy them out, but not this week and definitely not today. And, out of these 3 stocks, GSOL is, by far, the weakest performer so the opening price strength looked like an early Chanukah gift for me! TIM Lesson: I’ve shorted thousands of lesser quality companies like this nd I know that hype can help them perform better than quality companies so Short Selling into that hype is surprsingly more dangerous.
Since TIM is so tiny and GSOL relatively a pricey stock, I knew I couldn’t short more than 100 shares so I bided my time at the market open and waited. But, my usual impatience got the best of me and I entered in my short sell order at $36.67, afraid I was going to miss the bear party. Luckily, this stock was hard-to-borrow at Thinkorswim and my order was rejected. I immediately started chatting with their live help and discovered I had to contact them before trying to short sell hard-to-borrows. By the time I put my new order in, the price had risen $1/share and I wanted in ASAP.
I sold my shares short at $37.67 and cringed as I watch the price spike another $1 higher within a few minutes. Idiot. I felt relief that my position was so small as who knew how much higher the stock could go (it was up $4 now on the day). But I wasn’t very worried because BIDU, SOHU and the rest of the China gang weren’t doing much of anything and actually seemed to be losing momentum. I thought about doubling up, but this 100 share position already represented 30% of TIM assets - already exceeding the percent I wanted because I promised myself to set a good example for everyone watching (so much for that!).
Luckily, within a few more minutes, BIDU and SOHU both went negative on the day and everyone seemed to realize that the Alibaba hype miht wear off rather quickly. BIDU suddenly tanked $10 within a few minutes and GSOL followed suit, dropping down to $36.60. I thought about taking easy profits of $1/share, but it’d only be $85 after commissions. I decided to wait and hold, but after another quick drop to $36, I bought to cover, glad to take my $1.67/share in profits in 30 minutes. The price was in freefall so I actually bought to cover at $35.83, a nice $184 gain, and $170 after commissions. Not bad. good start to TIM.
GSOL gradually trended lower throughout the day and I felt somewhat guilty about covering too early, not only because of the $100 or so mor eI would’ve made, but because if I held overnight, it wouldn’t be counted as a day trader and as it is now, I can only do 2 more day trades in the next 5 trading sessions (since I’m below the $25,000 deemed to be necessary to trade so speculatively so often).
Gotta get over $25k so I can start trading the way I like! Holding CYGT I think will help me get there quicker than these $100-$300/ daily gainers.
(just signed up for Covestor so all my trades will be verified)
Disclosure: Timothy Sykes and TIM only have positions in CYGT, nothing else!
Please note that due to factors including low market capitalization and/or insufficient public float, we consider some of these stocks to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
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TIM Trades
View All| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| Nov 19 | AENY | $2.80 | $3.02 | $1148 |
| Nov 18 | NLST | $4.16 | $4.40 | $947 |
| Nov 18 | IMGG | $1.42 | $1.64 | $2094 |
| Nov 17 | NLST | $5.04 | $5.59 | $2195 |
| Nov 13 | VRMLQ | $21.50 | $22.97 | $2901 |
| Nov 11 | EONC | $2.61 | $2.80 | $687 |
| Nov 10 | EONC | $2.74 | $3.36 | $9784 |
| Nov 6 | QXM | $4.31 | $4.80 | $1936 |
| Nov 4 | COT | $8.66 | $8.88 | $642 |
| Nov 4 | QXM | $4.61 | $4.89 | $822 |
| Oct 30 | DDRX | $25.70 | $26.53 | $812 |
| Oct 29 | CTDC | $4.00 | $4.42 | $781 |
| Oct 26 | AWSL | $3.24 | $4.10 | $2516 |
| Oct 23 | RODM | $5.27 | $5.23 | $301 |
| Oct 22 | AMLM | $2.69 | $2.97 | $820 |
| Oct 22 | USEG | $6.12 | $6.09 | $85 |
| Oct 20 | CBOU | $8.93 | $9.06 | $243 |
| Oct 16 | VRMLQ | $16.79 | $18.65 | $2773 |
| Oct 13 | YONG | $11.05 | $11.66 | $1202 |
| Oct 13 | NPHC | $0.59 | $0.71 | $583 |
| Oct 12 | IMGG | $0.60 | $0.70 | $682 |
| Oct 9 | ZAGG | $5.50 | $6.10 | $2380 |
| Oct 7 | GVBP | $0.03 | $0.27 | $702 |
| Oct 1 | NPHC | $0.70 | $0.85 | $1482 |
Total: $98,094 (681%)
