Easy Short Plays: Short Selling Hyped Up Failing But Spiking Biotechs The Sequel
Posted by timothysykes on Thu 10th of Apr, 2008 08:05:49 PM
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Last night, I posted about how excited I was to short another failing biotech into a ridiculous penny-stock-promoter-fueled price spike. Just like the last time, I wanted a 25% drop in stock price, but I didn’t get that, the price action just didn’t play out as I wanted it to—a decent 8% drop, but no big freefall. I still made $180 today off my wrong thinking, so life could be worse.
After an initial 15 cent spike to $4.67—not scary at all cuz it was just one big buy 14k buy order (what is it with these guys, other one at $5 yesterday) that got taken out quickly—the question was could we take out multi-day support at $4.35-$4.40…most of the morning it couldn’t so I covered 700 of my 1,000 shares at $4.40, a disappointing 10 cent/share gain…then it bounced, then very gradually it declined, but still didn’t crack, so I covered my other 300 at $4.37, then gradually…so gradually…$4.35 got taken, then $4.31, $4.25—I re-shorted 1,000 at $4.25 looking for a domino type fallout from stop losses getting taken out there, then onto $4…
But it never made it to $4, there were big block buyers at $4.05, $4.10, $4.12—forget that, I covered at $4.15, another pathetic 10 cent/share gain…this thing is just too illiquid/slow moving for me. When I say domino-effect stop-loss-induced-panic-selling, I want the intraday graph to look like this:
But I couldn’t find shares of NCEN to short. Oh well. Bsides, after shorting PSTI at $5, a normal person would be up $800 right now…but I have the patience of a ferret on crack. I’m serious, a 2-day coma patient would’ve shorted at $5, gone into a coma and woken up here at $4.23 and cover their position tomorrow probly around $4 (to spend the profits since they’re so happy to be alive) and yet for all my mistakes, I’m up just over $500 on it…all hail PennyStocking!
Might re-enter again tomorrow, might not, this stock is sure to get even more illiquid and I don’t have the excess capital lying around to wait for it to really dump…next!
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