The Sykes Pattern Is Alive And Well, And I Will Teach Everyone, Including Myself, Seriously
Posted by Timothy Sykes on Thu 13th of Dec, 2007 02:04:52 PM
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TIM $14,195 (up $43 on the day)
Short 1,000 MWY @ $3.29
Another Near Miss, I Really Suck Lately And That’s OK
Covered my 1,200 ZVUE right at the open at prices ranging from $2.12
to $2.15—I didn’t like what I saw (no volume, no gap up, pathetic PR this morning) so I took my basically 12 cent/share loss. Not a bad trade.
Ahhh The Sykes Pattern—yup, that’s what I’m calling it. I’ll have detailed post later tonight (big dinner meeting with some producer folks), but for now just look at the charts of ASHW, JMBA, AMPX and now MWY—see any similarities?
Yup, it doesn’t take a brain surgeon to profit from this pattern and that’s why this afternoon, I shorted 1,000 shares of MWY @ $3.29—hoping for a gap down and a possible crack of $3 tomorrow morning. They have a new video game out (which they previously announced would be delayed) that will probly save the company and the stock has spiked basically 100% as a result (mostly due to panicking shorts—this is a massively shorted company). I gave up trying to predict corporate turnarounds long ago and instead have learned to focus on chart patterns, patterns exactly like this one (as some of you know I go on and on and on about in my dvd)
The ideal entry coulda woulda shoulda been much higher ($4.30 was niiiice, but I like strong stocks to crack—a little—before I short), but the thing tanked so quickly this morning, I was scared to short in the $3.80 range. By the time I told myself I should just bite the bullet, the thing had tanked to $3.50 (on its way to $3) and I was praying for an afternoon bounce to short into. I took the bounce to $3.30 as $3.33 held firm all afternoon long (was kind of nervous it would really bounce, but it’s all about conviction and this was a good pattern to short). Make no mistake, this is a risky overnight hold (considered the stock is down 19% today!), but I’m so sick and tired of not being able to day trade freely, I’m gonna start taking on more risk in order to try to get to the magical $25k mark—we’ll see how it goes, might be my undoing, but it’s worth a shot.
AMPX—I was afraid of this chart pattern yesterday—scary stuff for longs (although who, other than somebody trying to naively scalp 50 cents-$1 would be long after this runup, cough, cough), just another day in the office for The Sykes Pattern if you’re a short seller. Missed this one completely
Lots of big news movers today: JBLU—potential ownership stake—big spike, fell halfway back down, now holding (too risky for me considering potential follow up news), RIGL—big drug news—big, big spike, lots of shorts, offered solid breakout entry at $20 in the afternoon, tried to grab 200 shares, thing ran too fast, another opportunity wasted (ran to $23 within an hour although I’d probly sell out at $21-$21.50 cuz I like quick profits), SVNT—big drug news—solid premarket volatility (5 points!), but boring during market hours (I hate playing biotechs so I never really considered it)
EMKR—nice continuation on the breakout yesterday, probly due to the overnight Forbes article and continuing press today. If I’d been in it (which I probly shoulda been), I’d have sold it pre-market because it wasn’t looking too strong and I get uncomfortable being long strong stocks that don’t perform (hence the reason why I try to avoid putting myself in these situations—TIM Lesson: Know Thyself!)
FRPT—wow, an up day, albeit a slightly up day –thought about buying some, but catching falling knives is too painful
CYGT—last, but certainly least, they won another contract to outfit a park that gets 250,000 visitors/year…you can actually see Cygnus’ new software at work at this new park already (click the buy season pass button—it’s kind of funny how advanced Cygnus’ software looks compared to the MS DOS looking website this park has, aka why Cygnus might be TOO GOOD LOOKING)…Impressive win, probly says more about the credibility of Cygnus’ new CEO though than the credibility of their new software considering this park’s management are all ex-Six Flags—see the details here—the really good news being that this park is owned by a $16 billion hedge fund, so these people should eventually see the potential for Cygnus to increase exponentially and just snap Cygnus up (my average is 40 cents so I might still profit from this thing yet!)…good buying volume on today’s news, longs rejoice, still a loooooong way to go!
Positions: Anti-The Idiots at WarOnGreed.org, Short MWY
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TIM Trades
View All| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| 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: $92,304 (644%)
