A Short Seller’s Dozen: What Stocks Get Pumped, Must Come Down, Usually

Posted by timothysykes on Thu 8th of May, 2008 07:26:44 AM

Tags:

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

bwen A Short Sellers Dozen: What Stocks Get Pumped, Must Come Down, Usually

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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Ben_Bien

YES, first comment.

monkiman

Im up...checking in 4 duty..

Tony Ellis

APWR might be one to watch.

Dan

Tim, Thinking of buying Cote looks like it can run to a buck before it come back down. What you think Tim. Thanks

Dan

Thinking of buying Cote looks like it can run to a buck before it come back down. What you think Tim. Thanks

Dan

Thinking of buying Cote looks like it can run to a buck before it come back down.

Davey

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.

RGIlles

Same here Davey

JMonie

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..

novalis78

WOLF ... ouch :-)

short shot

CHTR anyone like....steady up...needs a breather

Millionairemind

Thouh there were more sellers than buyers of ENT yesterday on level II, this one made a nice cup and handle, breaking out possibly?

Davey

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.

ivegotstylekid

idmi is at it's resistance of around $2, unfortunetly it's there due to missed earnings. I'll wait on play

Mark

I feel your pain. I tried TOS all day yesterday and found no VRML and now today no LGDI or VRML.

timothysykes

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)

sniper6

Oh yeah, FOUR is looking really shady.

Davey

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.

J-Mo

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.

timothysykes

VRML annoying fluffy PR this morning scared some more shorts, guess this might take a while for it to fade

Bob the VC

Wow, TDA allowed me to reserve 500 VRML (for now). Will today be the big drop??

bullpicks6

BWEN after the pullback should be a good buy

timothysykes

cote just looks like a typical microcrap spike, if it werent so low, i'd short into it that kind of junky move!

Dan_O

My guess is that BenBien will kick all our asses because he doesn't need sleep. Isn't that right Ben?

wes

utvg just dipped below its resistance

Davey

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.

cacaosteve

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.

Davey

Sorry GTXO

wes

I mean support, UTVG just droped below its support. at around 2.34.

jj

IAR's making it's third day run...is this one to watch?

timothysykes

IAR is a fundamental mover, i dont look to short those

wes

hey tim, are you going to short vrml if it hits 4?

Davey

When life hands you lemons(no shares of LGDI, VRML, SUNV) You make lemonade(GTXO). Strong volume on the breakout...RTQ 2.28

jj

got it...i was looking at more from the prospetive of it's run up and that it's easy to borrow.

timothysykes

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

Millionairemind

Tim, I missed VSCI :(

jj

davey what are you referring to as RTQ?

J-Mo

Wow check out VSCI's drop!

cacaosteve

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!

jj

also your GTXO - very little trading volume and does not look like any real pattern to watch for...am i missing something?

Bob the VC

Tim- stupid question, but are the majority of those sells shorts looking to enter, or longs looking to close?

Bob the VC

J-Mo, have you entered yet, or is that your limit sitting there at $3.90?

Davey

JJ, GTXO has over 200,000 shares traded already and the pattern is that it's breaking out to an all time new high with big volume. Check Tim's post a couple days ago saying to keep an eye on this one.

jj

i'll have to go back and check...thanx

ivegotstylekid

covered my LGDI from tuesday 4.31 at 4.16, wallstreetsurvivor account but a nice gain of a little over $800, IDMI still tempting a buy if it drops below 2.10. I'll be sitting on my hands till then.

jj

IMDI just may get there today..trading at 2.16 right now..

Dan_O

Just look at GTE, it's a beauty of a chart.

I have not a clue which way it will resolve, but man... it's flipping beautiful.

JensGould

Pretty sweet head and shoulders forming on WSCI

novalis78

had a perfect setup on WOLF ... unfortunately only on WSSurvivor :-( already up $500 - no real buying power left...

Davey

whoops Accidentally Sold all @ 2.27...I tried to cancel but it went through. Double clicked the confirm and send to trade desk by mistake. A little $80 gain after commissions.

timothysykes

i have no idea what four, kyus, gte, gtxo will do--i stick to my supernova shorts, VSCI was nice today missed that, but i doubt i couldve even traded it

BDOG

down goes VRML hopefuklly for the 10 count or 3 count lol

short shot

VSCI weeeeeee

J-Mo

Bob, such low volume on VRML it's tough to get in. I got a whole 20 shares at 3.84 before it took a dive.

timothysykes

plenty of volume on VRML, coulda woulda shoulda built your position all up n the 3.70s...u just need to be aggressive

J-Mo

I just said F*&% it and dropped it down to 3.60. Took out a couple of 1000 share blocks. Still got 980 available. May hold it in case it goes back up.

Bob the VC

I've just been chasing it, and getting pissed off (or pissed on depending on how you look at it). I'm considering just setting my order to a AON and putting it smack in the middle of the B/A..

novalis78

ENT is beautiful UP. Broke 2.85

J-Mo

How many you got reserved? Thanks for the tip Tim. I just did.

timothysykes

VRML fading nicely now, even after fluffy PR, late in the game for its 300%+ runup, once it cracks below $3.40, its gone, I still want to cover under $3

Dan_O

Nice catch Jensgould, IMO that is a nice H&S forming. Maybe a short would get you to a support @ 11ish, maybe risk a spike up to 17. I doubt the spike though, declining volume, MACD and RSI point to a temporary low.

This stock knows how to behave look at the box breakout pattern in Feb-March.

Noobs, you should take a look at this stock and observe the action. For education only, it definately doesn't have a the same high probability of Tim's trading strategy.

*Note: I'm not a pro, if you put my strategy into play you will immediately have a margin call and go to debtors prison. Don't drop the soap.

wes

SIX just broke down bad

J-Mo

I'm with you Tim, no less more than $3 for these shares. PS, up $252 on ASIA from yesterday and up $210 from VNDA from yesterday. Thanks for the strategy. Me likey a lot a lot.

JensGould

nice pooping on vrml

Bob the VC

In 700 shares at 3.49- Tim you're right as usual. I should have been agressive and grabbed it when it was smacking me in the face at $3.80.. WCS... Story of my life..

Jeff C

ENT anyone?

short shot

ALVR 8.80 short

novalis78

not enough BP...was going to buy it @2.88 G^%$#

novalis78

ENT, i mean :-)

timothysykes

nice crack on six, just not enough trades in the day, huh you sanctimonious SEC pricks!

JensGould

there's np buying interest on vrml! no one wants my shares at 3.50!

morrisix

CHNG looks about ready to short

JensGould

spoke too soon

Jeff C

Anyone short GTXO, crash and burn Mav

novalis78

shorts, stay away from CHNG :-) LOL. That's a Cramer pick and top chinese microcap

wes

Someone take a look at SIX for me. I shorted at 3.13, I didn't catch the drop quick enough I guess....Think it will fall more? Maybe a cover stop at 3.35? or is that too liberal?

timothysykes

wes, why in the world would u short SIX after a big % drop like that? do u like pain?

sniper6

TCMI-probably some insider shill buying up the price to help with the delisting thing, price will plummet but shit for volume..

JensGould

I said it yesterday too, but larger share dumping on lgdi is starting to pick up.

timothysykes

VRML inability to go negative on the day thanks to big 10k buy blocks means no morning panic, now either afternoon or tomorrow or even next week...thats annoying

sniper6

DAR- another nice breakdown

J-Mo

Tim, is VNDA setting up for an afternoon fade?

Bob the VC

Yeah, VRML is out to get me.. I've got a meeting at 2:30 which will probably take me through the close.. Do I dare hold over night, or bail at the first sign of a dip before that?

wes

Tim. I was chasing figuring it would keep droping. Its only a very small position for me though, I'm just testing the water with pennystocks. I usually only play large caps with TA indicators. I'm not as used to all this volitility..

timothysykes

i have no idea what vnda is gonna do, its an earnings play!

wes, i dont care how small a position something is, that doesnt give u the right to trade stupidly, probly lose $ then blame it on pennystocking. downhere in the gutter, we never chase...i suggest u check out my dvd so u can learn the rules before it costs u a lot more $300:

http://www.timothysykes.com/dvd

timothysykes

Bob Vrml is not out to get 3.50 was just a stupid entry...int he 3.60s or 3.70s, u still had a chance to get some nice space between u and the support at 3.45, but if u're gonna short on the bet it goes negative on the day, there's no point in shorting until that support cracks--ideally u short, making it crack...tough lesson for people to learn that sometimes its better to short at a lower price or not at all

or maybe it wasnt bob who shorted there, i dunno--too many comments

wes

CEGE up 9% in a downtrend. Possibly an afternoon fade approaching?

Mark

Tim, Speaking of annoying...SUNV is annoying right now. Not sure what to do now.

Bob the VC

Good point.. I knew my entry on this was total shite as soon as I did it.. I didn't stay disciplined, and now instead of a sure drop I have to hope it cracks support, which it doesn't look like it's going to do..

aakash

Look at akns...shorted at 5.55 expecting to go down to 5 by end of today.

aakash

Look at akns...shorted at 5.55 expecting to go down to 5.2 today. What do yall think?

timothysykes

wes dont short random penny stocks, seriously get the dvd, its your only hope cuz youre drawing all the wrong conclusions here

Dan_O

aakash, I think you are chasing a trade. That probably means you are not in the right mindset. Perhaps you are trying to make up for a loss, I dunno. Either way it looks pretty random.

Jeff C

Thoughts on ENT folks, looks like it hit morning resistance at whole number 3.00

novalis78

Sure, 3.0 is a magic number. Market goes sideways anyway now (lunch)...If it can keep the 2.90 range through the afternoon, new buyers may stream in later this day or tomorrow. Who knows :-) (i am not in ENT, s.a.)

Davey

Guys...STOP WANTING TO TRADE EVERYTHING...These are random plays that you have no advantage on. It's ok not to trade every minute.

Davey

Go watch some TimTV there's a funny clip of a girl turning down a proposal at an NBA game.

lmsmith

Tim- How do I put my Gavatar up-- I was searching all night trying to figure it out

Bob the VC

Wow that sucked.. I tried to be clever with a trade trigger, and it backfired. I just covered at 3.70.. That's a painful lesson. Now do I try to get back in on this spike..

YngvaiMalmsteve

I don't get why some of you guys keep wanting to short any penny stock that happens to be up. I don't even have Tim's DVD and I know just by reading his site enough not to do that.

Also, some of you guys want to short earnings moves. That's risky business. If you're using the TOS software, look at the bottom of the graph. If you see a $, then it means there was an earnings report. You can also look at the "Live News", and you can see if there was an earnings report.

Jeff C

Davey when you're right, you're right man...just researching

Goose

Guys, I learned a good lesson today not to short earnings. Please dont be like me and be stupid. Stay away from earnings. I beg you.

Jeff C

I'll go back to watching my Magnum PI....I may re-short MESA if it breaks .85...

YngvaiMalmsteve

Oh, and don't chase trades. If you missed out on a strong breakout move, or missed out on a good short (like VSCI), then don't chase it. That's a good way to lose money.

Jeff C

TIM- can't log in and haven't received a password e-mail for 2 days...no TIM Bucks pour moi..just FYI

burky

Imsmith - go to en.gravatar.com and sign up an account. And, don't worry about what nickname you pick. I wasn't able to get burky but it looks like it links on your email address. And, then it just showed up for me (even in past posts). That's Jack btw ... my son.

JensGould

Tim good call on not getting in until below 3.4 i got a little antsy. What can I say I'm an addict.

burky

Oh, and I think I logged off of Tim's site and then back ... not sure if that was necessary.

novalis78

Tim, what is your take on SYNM..someone talking about Go Zone Bonds...

Jeff C

I never had to log back on in the past, but the new site requires it for TIM BUCKS apparently

timothysykes

bob, yes u had a bad entry, but why cover so quickly, hardly any buying volume, it was just a little bounce, still plenty of big sells

yngvai, exactly, i dont know who these people are, but they're assuming waaaay too much about this game....just did a new post to correct their asses:

http://www.timothysykes.com/2008/05/08/why-penn...

lm http://www.gravatar.com

jeff email admin@ for help

noavlis i could care less about SYNM an the other 99.9999% of microcraps not volatile enough for me

Jeff C

Thanks Tim, the prob was case-sensitive username...heads up on that everyone

Jeff C

YngvaiMalmsteve, great note on the dollar sign on TOS's charts, beautiful tool!

wes

Tim, one of your picks, UTVG, hows that still looking for you?

Dan_O

Hmm... every time I try to load the new post it aborts. WTF

Dan_O

Anyway, SUNV just released a fluffy press release that is just bursting at the seams with engineering gibberish.

It's up a quarter, definately not a TIM play yet.

RGIlles

I can't open the new post either

Blithe

I love to watch this stuff come down. Is that so wrong?

lmsmith

Thanks Burky

will_the_thrill

hey, ivgot, did r u going to pick up idmi, see it's at 2.07

timothysykes

does the new post work u guys now?

burky

VSCI - anyone know anything about flag patterns? I recall reading from Zanger's site that they're bearish/bullish depending on the direction of the preceeding pattern - but do they mean anything intraday?

ivegotstylekid

picked some IDMI at 2.07, been checking out the boards for some future pumps. It's my first idea without any suggestions, so I'm not sure if I'm looking at the chart correctly. It seems to always hold the low 2's and rise up for a couple days. Also saw something on the lion about a future pump on the 14th but who know how reliable that is. I'm trading it on my WSSurvivor Account first. Only have $300 sidelined on my Etrade account and I'm under my 90 restriction. Let me know what you guys are thinking on this.
Thanks,
styles

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Who Is Timothy Sykes And Why Should I Care?

See Tim's full bio HERE. Tim turned a few thousand dollars into a few million by taking small gains time after time on hundreds of volatile penny stocks, discovering that his trading strategy, while consistently successful, works best for those with smaller accounts.

Determined to teach others this PennyStocking trading strategy (learn more HERE), he went back to his original $12,415 roots (already $58,000+ even though the stock market has crashed) to show everyone how to turn thousands into millions, even while having a life (somewhat) and making plenty of mistakes. Currently he is the #1 ranked trader out of 25,000+ on Covestor)

How Can I Consistently Make Money In The Stock Market?

Hard work, Determination and Know How.

Hard work to learn how the greatly misunderstood niche of penny stocks provides opportunities every now and then on which you should pounce.

Determination to seek those probable profits out and know how in order to actually profit from them.

Long story short, wait for stocks that are extremely volatile - for whatever reason - and then aim to take small profits (between 10 and 50% within a few hours, days or weeks) here and there, either from betting on higher or lower prices (yes, you can make $ betting on lower prices, it's called Shortstocking (learn more HERE).

Why Penny Stocks?

As Tim explains in several ALL-NEW instructional DVDs (see them HERE) and in over 2000+ blog posts, penny stocks are the most hyped and corrupt niche in the entire investment world. These two qualities make them the easiest to profit from (legally) because the vast majority of people who play penny stocks are suckers and all-around ignorant people. If you have any intelligence whatsoever, you have a clear advantage and it's like playing basketball against mental midgets.

Where Do You Find Stocks To Trade?

This is the #1 FAQ (see more HERE) and it is answered in THIS instructional DVD.

Of course, that's just a brief introduction - to receive a full education, there is Tim's book An American Hedge Fund which is the story of his remarkable rise and lessons learned.

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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%)