To Short Sell Or Not To Short Sell, That Is The Question

Posted by timothysykes on Tue 22nd of Apr, 2008 09:42:19 AM

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There are a great many microcraps surging—some look to be potential shorts, while others, you just gotta sit back and watch them play out:

As I’ve repeatedly posted, I’m short (EDEN) cuz it’s the perfect mix: failing company, quick spike followed by gradual fade and most importantly, the spike was caused by erroneous reporting. Forget about guessing games, TheStreet.com handed this to us on a silver platter!

TIGR’s still great to short, but good luck finding shares!

PDO and MXC Two little oil plays that are spiking, be very careful, remember, they’re not pure pumps as they are tied to that strongly performing commodity (that ain’t easy to short…remember the KOG…which itself is breaking above recent highs aka not a short!)

ENT is another small energy outfit trying to spike here, although its spike is rather gradual as it’s seemingly going for a cup and handle breakout…not a short!

ent To Short Sell Or Not To Short Sell, That Is The Question

Speaking of not shorts, FEED, WSCI and UFPT can never seem to go down—when stocks go up 4, 5, 6, 7 days in a row, they’re obviously not one time pump and dumps and they can go a lot further than you’d ever expect—take a look at this GENC chart below to see what I mean!

genc3 To Short Sell Or Not To Short Sell, That Is The Question

If you really insist on shorting higher priced stocks, at least go with one that’s in a nice death spiral like COIN. The agri sector is booming and along with fellow probable fraudster SEED, all it can do is watch…people already know to expect little from SEED, but COIN’s chart looks to be a multi-month breakdown…

coin7 To Short Sell Or Not To Short Sell, That Is The Question

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timsykes

EDEN acting perrrrrrfectly, only a few hundred buys at the ask, the rest all at the bid

Michael Goode

Hey Tim, I joined you on EDEN; IB finally has a ton of shares to short.

timsykes

awesome!

Mike

I don't know if it is my crappy luck or E*Trade's crappy borrowable shares, but I was never able to find any shares to short for EDEN. Oh well, good luck to you both - looks like it is behaving NICEly.

bdog

What happened to all the stop losses at 2?

GabeC

Hey Tim, question. some of the charts i look at seem to triple in a month, sort of gradually, but on a 6 month chart it looks like it went vertical, would u still short it on a second down day? or do u only really look for 5 day pumpers.

ViciousChicken

Ameritrade is killing me lately- I've not been able to short TIGR or EDEN!

timsykes

thats why u gotta get away from eturd!

turned out there werent many stop losses at $2, u can never be sure until they get taken out or not

timsykes

gabe no way to make generalities, give me some tickers

timsykes

uh oh solars ar eheating up, nice 10+ days of consolidation/luring in longer term short sellers

be-the-ball

tim,

solars are heating up cause oil is $1000/barrel

GabeC

Here are a couple Tim i am looking at. Trying to do my own research but not sure if im looking at the wrong thing.. seems to fit the profile. CDY, BCST, PESI, RNIN ?

GabeC

PESI looks ripe to short now, 2nd down day?

timsykes

those are all on my watchlist but they're waaaay too gradual/non-voltile for me, experiences tells me i have lower odds of success there

Brian

hey tim,

what are you thinking about dgly. i know you said their chart looked pretty strong at the end of last week but it has been pretty stagnant in past 2 days with fairly low volume. do you think this is something to short?

timsykes

wheres it gonna go brian? it's a perfect breakout at $8...meaning that most likely becomes support now...$1 of downside, $1-2 of upside, no thanks

Tony Ellis

Head and shoulders bottoms forming in POS solars?

timsykes

TE whaaaaaaaaaaaaat solars looking strong, aybe inverse head and shoulders

Covered EDEN at $2.01, got a meeting, not liking the way its not breaking down, ferret-like impatience kicking in, not worth risk of spike iho, another $250ish profit

GabeC

Thanks Tim, so stick to 5-10 day pumpers. Cool.. how about NVGN.

GabeC

NVGN 6 month chart looks ridiculous, 3 day pump, 2nd down day.

timsykes

nvgn is barely up and its a gradual riser and biotech, avoid

InvestorsLive

FEED I took a short position - going to see how it plays out

Tony Ellis

I didn't say any looked strong. Just noticed the pattern, may play out may not. The pattern means nothing unless they break out which none of them have.

Tony Ellis

Thanks for crediting me with the ASIA pick...lol

Jeff C

SCA anyone?

timsykes

I f$#@!en hate when traders say "lets see how it plays out" yes, you might profit, you may not, but there is NOTHING in that chart to warrant shorting, its trades like those that give trading and more specifically shorting a bad name, random random random, u learn nothing, go to the casino!

InvestorsLive

GENC I had been monitoring for the short.. nice find - FEED I have a nickel cushion .. has to lose 19.85 then 19.65 to get into any downward spin and scare anyone long out... but I'll take my chances and cover for a dime loss if need be

timsykes

nice cover on EDEN, now 2.10 x 2.19. off to my meeting, be back in an hour

InvestorsLive

Ha, I wouldn't be picking it if I didn't have a reasoning for it.. or see something that makes me feel like its beginning to a) lose volume, b) make lower highs, and c) stay under a very important area of $20.

I could say I want to cover at 19.51 or 19.25 instead of "lets see how it plays out" but just like you if it jumps up such as KOG, the real deal is.. you really don't know how it could play out - it is a casino, odds we hope are in our favor but either way still a gamble

bdog

nice cover 2.20 now good nose for it

Steve

Tim, check out PPC...has had a big move, is it a short?

InvestorsLive

FEED played out as expected covered most for .80 cent profit :) :) :) 19.31 quick $510

Dan-O

Hilarious

InvestorsLive

To cover the rest or not to.. that is the question, sweet tank guys! I only have 200 left I covered most of it before

Dan-O

I double dog dare you to hold it for a week

monkiman

made over 1000 shorting TITN, but took a loss on EDEN, its stuck at around the low 2's, it did go to 1.97 for a while.

InvestorsLive

Ha yea right I'd expect this to test mid 18s maybe 19 but nothing more.. they did do that raise at 16 so its in someone's best interest to support it above that... but you never know..

Did you short? if so nice play looked like people were getting bored with it and $20 is one of those numbers that it either holds it.. or tops at it..

Mike

what's up with EDEN right now?

bdog

This might be a stupid question but if anyone can answer it I would appreciate it....when EDEN bounce up to 2.20 was that from everyone covering their shorts?

InvestorsLive

It could be - could be someone stupidly buying at market (not a limit order) could be shorts getting scared that it was going to bounce and wanted to cut their losses quickly or it could just be traders buying in thinking it was going to $2.50

Dan-O

Is ANYONE watching VISN?

Mike

Placing "market orders" has to be the biggest mistake made by beginner investors. Yowsa.

Dan-O

Sweet lord UAUA is getting crushed. 1Q loss on high fuel prices.

ExcelTrader

IB (for the moment) has TIGR available for shorting.

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Nov 4	COT	$8.66	$8.88	$642
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Oct 30	DDRX	$25.70	$26.53	$812
Oct 29	CTDC	$4.00	$4.42	$781
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Oct 22	USEG	$6.12	$6.09	$85
Oct 20	CBOU	$8.93	$9.06	$243
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