A Short Seller’s Dozen: What Stocks Get Pumped, Must Come Down, Usually
VRML Short 1,300 @$3.75
LGDI
SUNV
Getting up bright and early, I reserved shares in all three of these stocks to possibly short today, not knowing which I’d actually short. LGDI didn’t even trade for 5 minutes and when it did, it moved slower than an under-cooked lobster. SUNV didn’t breach the key $1.20 level until the afternoon (when I had no trades left), so it was all about VRML.
I wanted to short into strength cuz it was a classic short covering rally from yesterday’s $1.75 pullback off the highs…given the magnitude of the declines and that it’s still up 300+% in a few days—on an ill-researched story thinking this near bankrupt company will do anything but go under—meant short sellers would be aggressive. Afraid I’d miss the probable pullback, I jumped the gun too early, shorting 1,300 shares at $3.75…as I watched it hang around $3.90 x $4 for another 30 min, I wasn’t very worried as the big buyer blocks were only on the bids—the wall of sellers at $4 never in danger of cracking—a clear sign of pumpers trying to scare up buyers/short covering…inevitably, the volume faded, the bids disappeared and the stock spent the day chomping gradually away at its early gains, few buy orders at the ask. I’d call it a perfect crack of sideways price action in the $3.60 range, but it still managed to finish up on the day, so it’ not totally perfect…just yet.
Despite my poor timing, I’ve got a nice $380 profit so far, I let it ride overnight cuz I think it goes under or around $3 today or tomorrow, possible big stop loss panic if it take out $3, might get to cover at $2.60-$2.75ish if I’m lucky.
VNDA
Nice gradual fade, but not my ideal PennyStocking short, too tight a chart/variables not fraudulent enough to squeeze one in
BDCO
Everyone’s goin crazy over an 18 cent gain, leme know when it gets to $3, until then jewwwww noooo
BWEN
Perfect perfect breakout, too bad it was Cramer induced aka false—remember GTE’s Cramer induced breakout took a 25% drop after before breaking out due to commodity prices, not any guru
COTE
Probable gap up and possible multi-day runner, couldn’t touch it, pattern day trading rule, triple jewwww yahhhh shout out to the SEC on that one!
VSCI
Getting steep up there in the nose blood seats, when will it end
PLM
Multi-year breakout, but it’s ever so slight—same vein as failure of an impressive breakout ASIA and it’s AMEX, noooo jewwww noooo
GTE
Not such a gradual breakout anymore, making me sing: gimme gimme more, gimme more, gimme gimme more (SEC quarantined trades that is)
FOUR and KYUS
Two pumps getting tired of pumping…what gets pumped must come down
PS
My apologies for not responding to everyone’s individual stock requests, too many these days, keep posting, if it looks interesting to me, I’ll post my thoughts in these pre-market watchlists
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1Ben_Bien(TIMBUCKS: $36)
May 8th, 2008 at 7:46 am
YES, first comment.
2monkiman(TIMBUCKS: $30)
May 8th, 2008 at 8:04 am
Im up…checking in 4 duty..
3Tony Ellis(TIMBUCKS: $24)
May 8th, 2008 at 8:17 am
APWR might be one to watch.
4Dan
May 8th, 2008 at 8:19 am
Tim, Thinking of buying Cote looks like it can run to a buck before it come back down. What you think Tim. Thanks
5Dan
May 8th, 2008 at 8:20 am
Thinking of buying Cote looks like it can run to a buck before it come back down. What you think Tim. Thanks
6Dan
May 8th, 2008 at 8:21 am
Thinking of buying Cote looks like it can run to a buck before it come back down.
7Davey(TIMBUCKS: $113)
May 8th, 2008 at 8:35 am
There might be a problem recommending TOS to everyone, I love them but this is the second day I’ve been up since 7 and there is no VRML, LGDI, or SUNV. Looks like everyone is going after the same shares, and I didn’t even see anyone get shares of VRML yesterday. Oh well.
8RGIlles(TIMBUCKS: $14)
May 8th, 2008 at 8:48 am
Same here Davey
9JMonie
May 8th, 2008 at 9:04 am
Tim - I read in the forum you are going to put up a post on same day trading, along with restrictions etc etc.. I see that you used to use E Trade and am curious how you avoided suspension with them, that is who I use and yesterday I opened and closed a position and am curious when the next time i can do this is without getting nabbed..
10novalis78(TIMBUCKS: $23)
May 8th, 2008 at 9:05 am
WOLF … ouch :-)
11short shot
May 8th, 2008 at 9:07 am
CHTR anyone like….steady up…needs a breather
12Millionairemind(TIMBUCKS: $17)
May 8th, 2008 at 9:08 am
Thouh there were more sellers than buyers of ENT yesterday on level II, this one made a nice cup and handle, breaking out possibly?
13Davey(TIMBUCKS: $113)
May 8th, 2008 at 9:11 am
JMonie, you can make up to 3 round trip trades (opening and closing a position on the same day) in a 5 business day period. If you go over that you can get restricted. Some brokers use Buying Power Restrictions like TOS and others go by that 3day trade rule, but you have no restriction on re-using your buying power.
14ivegotstylekid(TIMBUCKS: $74)
May 8th, 2008 at 9:17 am
idmi is at it’s resistance of around $2, unfortunetly it’s there due to missed earnings. I’ll wait on play
15Mark
May 8th, 2008 at 9:29 am
I feel your pain. I tried TOS all day yesterday and found no VRML and now today no LGDI or VRML.
16timothysykes
May 8th, 2008 at 9:29 am
Davey, problem could be too many people but its doubtful–u gotta remember that these patterns are a few days old now so they’re obvious to EVERYONE. sometimes you gotta get in early and suck up big losses just to have a chance to ride it on the way down, just like everybody who’s short MXFD did (shares only available back when it was $12-13)
17sniper6
May 8th, 2008 at 9:34 am
Oh yeah, FOUR is looking really shady.
18Davey(TIMBUCKS: $113)
May 8th, 2008 at 9:34 am
It’s ok, I remember you said a while ago you have to be early and take the pain sometimes, cuz they run out of these shares quickly. I’m looking at buying some GTXO on the breakout of 2.20 to new highs.
19J-Mo
May 8th, 2008 at 9:34 am
Thanks Tim for bringing everybody to TOS. I’m still on ameritrade and found 3000 shares of VRML to short this morning. We’ll see if it works out.
20timothysykes
May 8th, 2008 at 9:35 am
VRML annoying fluffy PR this morning scared some more shorts, guess this might take a while for it to fade
21Bob the VC
May 8th, 2008 at 9:35 am
Wow, TDA allowed me to reserve 500 VRML (for now). Will today be the big drop??
22bullpicks6
May 8th, 2008 at 9:35 am
BWEN after the pullback should be a good buy
23timothysykes
May 8th, 2008 at 9:37 am
cote just looks like a typical microcrap spike, if it werent so low, i’d short into it that kind of junky move!
24Dan_O(TIMBUCKS: $50)
May 8th, 2008 at 9:37 am
My guess is that BenBien will kick all our asses because he doesn’t need sleep. Isn’t that right Ben?
25wes
May 8th, 2008 at 9:40 am
utvg just dipped below its resistance
26Davey(TIMBUCKS: $113)
May 8th, 2008 at 9:40 am
Bought 2000 GXTO @ 2.20 breakout to all time new high…gotta little juice with a PR as well. I will add if it dips.
27cacaosteve(TIMBUCKS: $14)
May 8th, 2008 at 9:42 am
no shares of VRML, SUNV, or LGDI on TOS. I got some FOUR and KYUS instead. Anyone playing these?
Not much volume at all, not sure when to short. Just ordered Tim’s DVD so I don’t know quite what I’m doing yet.
28Davey(TIMBUCKS: $113)
May 8th, 2008 at 9:42 am
Sorry GTXO
29wes
May 8th, 2008 at 9:42 am
I mean support, UTVG just droped below its support. at around 2.34.
30jj(TIMBUCKS: $61)
May 8th, 2008 at 9:46 am
IAR’s making it’s third day run…is this one to watch?
31timothysykes
May 8th, 2008 at 9:49 am
IAR is a fundamental mover, i dont look to short those
32wes
May 8th, 2008 at 9:53 am
hey tim, are you going to short vrml if it hits 4?
33Davey(TIMBUCKS: $113)
May 8th, 2008 at 9:53 am
When life hands you lemons(no shares of LGDI, VRML, SUNV) You make lemonade(GTXO). Strong volume on the breakout…RTQ 2.28
34jj(TIMBUCKS: $61)
May 8th, 2008 at 9:53 am
got it…i was looking at more from the prospetive of it’s run up and that it’s easy to borrow.
35timothysykes
May 8th, 2008 at 9:55 am
no more shorting of VRML here, its the perfect sized position for me and besides i dont think it’ll hit 4 as big sell blocks are coming all over the place…buying should dry up sooner or later
36Millionairemind(TIMBUCKS: $17)
May 8th, 2008 at 9:56 am
Tim, I missed VSCI :(
37jj(TIMBUCKS: $61)
May 8th, 2008 at 9:56 am
davey what are you referring to as RTQ?
38J-Mo
May 8th, 2008 at 9:56 am
Wow check out VSCI’s drop!
39cacaosteve(TIMBUCKS: $14)
May 8th, 2008 at 9:57 am
KYUS is at 1.77, near 52-week high of 1.80, highest close in the past month is 1.77. What does everyone think? Tim? Thanks!