Why Speculative Commodity Plays Are Different Than Pump & Dumps

Posted by timothysykes on Mon 2nd of Jun, 2008 11:56:07 AM

PennyStocking students understand that while the Supernova chart patterns on commodity plays like Pyramid Oil Company (PDO), Fieldpoint Petroleum Corporation (FPP), Royale Energy, Inc. (ROYL) and Mexco Energy Corporation (MXC) make them seem like they’ll just continue to collapse for weeks and months just like your typical pump and dumps like KENTUCKY USA ENERGY INC (KYUS), FORCE ENERGY CORP (FORC) and BIOSHAFT WTR TECHNOLOGY INC (BSHF), they don’t.

Because their prices are tied to something much more real than spam, something many people call “black gold”. And as you can see from the charts below, some are barely bouncing (PDO) and (FPP), while others are actually breaking out to new highs (ROYL).

stock bottom Why Speculative Commodity Plays Are Different Than Pump & Dumps

stock bottoming Why Speculative Commodity Plays Are Different Than Pump & Dumps

stock bounce Why Speculative Commodity Plays Are Different Than Pump & Dumps

stock breaking out Why Speculative Commodity Plays Are Different Than Pump & Dumps

stock dump Why Speculative Commodity Plays Are Different Than Pump & Dumps

stock crash Why Speculative Commodity Plays Are Different Than Pump & Dumps

However you play ‘em, long or short, short-term or long-term, recognize this one basic truth and you’ll be much better prepared for the volatility that is to come. Me, I’d be short KYUS, BSHF and FORC long-term if I could find the shares…these oil plays I won’t short again until they either go up too any days in a row again or, ideally, when they crack their recent lows, a hugely bearish sign that would prove these spikes are just temporary.

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  • TomT
    woohoo.. great job Tim.. look like we back up.. FPP is having a nice run up.. I wonder if I can long this til tomorrow, since I have already met my "day trading" for the week. So All I can do now is trade, hold then sell the following day.

    still waiting for my TOS account to be setup.
  • Scott
    Tim, thank you for bring back the website alive again. Superman's trick didn't work today, NTI fell as low as $15.53, I covered today for a goooooooooooood profit, but still watching it and have reserved shares if it weakens further. Thanks for bringing out difference between fluffs and commodity play. As soon as "H" word was mentioned, oil price went back up, all PDO, MXC, FPP and ROYL started taking off, I am taking long position on these craps now and unbelievably higher already. Let's ride the tide upside and we will bring it down when the time will be right again. Good luck to you all!
  • chuckboycejr
    Hi All,

    LiveStock now has a social network where you can watch the show, chat, and even host your own blog!

    Check it out:

    http://livestock.timothysykes.com

    Chuck
    LiveStock Producer
  • nice scott, i couldnt find any shares to short this morning :(
  • JeffMoates
    Shorted ACOR at 28.46 for an afternoon fade.
  • Al
    anyone check out BEXP today?

    Tim,
    Made ~$200 on my LGND trade. Shorted on friday covered today
  • Alex
    Coal play NCOC also up today and maybe a breakout. Was hoping for a rally from CPSL but nope...shouldn've bought FPP instead....they both were meeting my criteria on Friday...but CPSL has better earnings so I bought that one WTF !!???!!?!?!
  • JeffMoates
    How's the site going Tim? Did you guys just ghost it back to a week ago?
  • LOL - yes, we had to ghost it back! Some of you may have lost some precious TIMBUCKS - we promise to make it all up when we reveal the rewards shortly.
  • Sani
    Yayyy we are back!!! I gotta tell you tim, I monitored Daytraderrockstar for a while and you seem to have much more influence and make more sense of what you say!
  • Bob (VC)
    Glad you guys are back online. Damn Russian hackers. What was it, some sort of SQL injection? Hope your host can offer some assurance that they will do a better job with their protection.

    There were a bunch of TIMinions blankly hitting the refresh button on their browser this morning hoping for some sign from their diety . :)
  • JeffMoates
    So far my ACOR short is working out for me. $1/share drop. Tim, you see this dropping any further throughout the week on this lame news? I figure we're lacking the supernova activity to justify my covering this short today. What do you guys think? Hold or Cover?
  • codyhof
    Thoughts on shorting into the LGND afternoon fade?
  • getshorty
    Jeff, why you think its gonna go down after that scary gap up? I just shorted 40 shares to try and get some of the fade.
  • JeffMoates
    getshorty, the news on it is just a PR update on their testing of their new super drug. Woo hoo, it passed "phase II - B/2.0 , a-45 series H of the Alpha code index." --Don't know if that's a real step in the process, but you get the idea. There are going to be a lot of longs looking to take their profits during this huge upswing. The way this is already performing I would not be suprised if it started down a dollar tomorrow.
  • JeffMoates
    yay! now down $1.50/share! congrats getshorty.
  • getshorty
    Owe you a coffee Jeff, lets go crazy, lets make it a Venti Cappuccino... I feel like going on a spending spree !!!
  • JeffMoates
    lol, I just read above how many shares you shorted. My bad for the over-exuberance. I got in with 500 and am really WANTING TIM'S OPINION ON THIS PLAY.... IF HE MIGHT BE LISTENING...
  • TomT
    TRLG seem to be down a bit now.
  • getshorty
    Jeff, sorry to turn you down, but I can't afford the capuccino anymore : (
    Did you got to cover before the spike?
  • eb
    Jeff...any thoughts on LGND? You think this will continue its fade? I hope it fades into the close. Thanks.
  • i dont short stocks like ACOR on the first day, my opinion, like yours is meaningless, much higher odds of shorting after multiple days when early shorts might get squeezed
  • JeffMoates
    That was one amazing spike. It will probably continue, I hate to cover for only a $100, but I would detest ending the day in the red.

    eb, first of all, that ain't no fade. Second, it has to get through a lot of buyers to go any lower (or sellers and higher for that matter). Too many possibilities. As tim would say, "not interested, don't care"

    While writing this, I covered my ACOR play for a measly 0.33 gain on 500 shares. BOO!!!
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