It Takes A Major Company To Shine Light On Supernovas: Volkswagen AG (ADR) (VLKAY)
Posted by Timothy Sykes on Wed 29th of Oct, 2008 07:56:38 AM
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As I’ve written about the past 2 days to TIMalert subscribers, VLKAY is a classic example of the Supernova chart pattern I detail at length in my PennyStocking instructional DVD that is bound to come crashing down.
Look at the 2-day chart, memorize it and remember that nearly every time–aside from earnings and takeover plays–for a bevy of reasons, this kind of exponential price rise is unsustainable:
As I stress in my seminars, the 3rd and 4th day of this kind of pattern is nearly uniformly red/negative/down big. With Porsche’s news today, the corresponding stock price action should be no different.
Considering how many times I’ve seen this EXACT pattern play out, it’s not surprising in the least to see the media’s intense scrutiny of this situation only because Volkswagon is such a large/briefly the largest company in the world. See Forbes article here, The Australian here, The Financial Times here and a solid video from FT regarding this short squeeze.
No matter that it’s the single easiest chart pattern of all chart patterns from which to profit–on the way up and down, in my experience–the media doesn’t care that it happens with some regularity in the penny stock market and yes, there usually are shares to short!
The key to my success has been to suspend my belief that stocks act rationally in order to allow the unfathomable to play out and not get squeezed by some ridiculous 300, 400, 500, or 700% price increase within a few days.
It definitely took me a while to learn this and that’s why I’ve created my instructional DVDs–to allow you to benefit from my decade-long battle with impatience and getting short squeezed.
Then the question becomes where can you find shares to short and aside from my love affair with Thinkorswim, Interactive Brokers has plenty of shares to short this sucker. Congrats to PennyStocking DVD student/ TIMalert lifetime member Michael Goode (I seriously do offer a lifetime subscription and Goode was the first member) and several other PennyStocking DVD students for being short this pig overnight–they’re about to reap some bigtime profits.
(Probly too late for those of you just joining today since this stock trades overseas and there its gotten wrecked to the tune of 44%, but this post is to help you prepare for the next Supernova, whenever it decides to show itself)
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