The Latest TIMalert 15% Winner: The Unbearable Simplicity of Short Selling A Friday Afternoon Short Squeeze & The Incompetence Of Penny Stock Traders
Posted by Timothy Sykes on Mon 24th of Nov, 2008 03:10:11 PM
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Like EVC was before it, shorting and covering KVHI today for an incredibly easy 15% gain, putting me up 195% since November 1, 2007, is both gratifying and humiliating.
Gratifying because I got in and made a high percentage quick $800+; humiliating because the intelligence of my TIMalert subscribers rivals that of penny stock promoters (on the same level as a 3-year-old).
Yes, many of you were humiliated today by one of the most obvious “gimmes” I’ve seen in weeks.
I don’t know what I have to do to get you people to learn to anticipate morning tanks, but no matter how many times I go over these concepts or how much I promote my instructional DVDs–which detail these patterns–you guys just can’t seem to bank alongside me.
Let’s review this madness:
Passages from my Sunday night alert sent to TIMalert subscribers so they could prepare for Monday since there were 25 stocks in play, almost all potential shorts:
The late day runup on Friday opens the door to a lot of crappy low priced runups worth shorting…last time I made $1400 in a few minutes shorting EVC at the market open the next day…yes, the drops can be quick so you gotta anticipate
KVHI surged 60% to $4 almost all in the last few minutes, definitely a potential short
Alert sent right at the market open:
shorted 1200 KVHI at 4.28ish….wanted 2k shares, but only got half…told ya it was gonna be quick, this is the same type of play when i shorted and covered EVC for an easy $1400 profit after its quick ridiculous runup from 1.2 to 3.2 in the last hour when the dow spiked 1000 points–i covered at 2ish…kvhi has the same kind of disastrous overall chart with market/short squeeze influenced spike…up from its real price of the 3 to 3.50ish range…on only a few thousand shares…this is how to use small account size to your advantage as this is a high percentage play that cant be done with more than a few thousand shares…my goal is to cover under 4 in the next 1-2 days
Alert sent less than an hour later:
covered 1500 KVHI at 3.80ish…i apologize for it being so illiquid, but its the illiquid ones thst are the easiest (since this thing surged on like 10k of volume late Friday)…at first i sent out the wrong entry price because i prepared my rational before my actual execution (to make it to u guys as fast as possible)…then i thought i only got 1200, then i saw i got a total of 1500 shares short at 4.27ish…decent entry…like EVC, i knew the fall would be quick so when i saw some size on the ask in the 3.70-3.80 range, i grabbed it (since i really just wanted to cover below 4). all in all, a $900 profit inside of an hour on a classic morning panic.
yes, this was too illiquid for most/all of u, but if u’ve seen my EVC trade and learned the lessons in my pennystocking part 2 DVD, u’d have seen this a mile away. SD and DPTR were the other 2 with the exact same pattern, this one was just highest percentage odds–as SD and DPTR bouncebacks are proving (those companies are more real so u’ll have tons more dip buyers)
Let’s look at the chart:
Yes, normally I like to wait 2-3 days before shorting any spike, but look at that intraday and you’ll see it wasn’t a real spike, it was a last minute spike to $4.75 on just a few thousand shares…that almost always reverses to some substantial degree.
I shorted around $4.25ish, and since it’s so illiquid there were only a few other opportunities to short in the $4.30-$4.50 range, but I’m saddened that I didn’t have any competition there from subscribers/DVD students.
Sometimes I just wanna short ASAP at the market open because any bids at or near the previous ridiculous close are just gifts. The market gave you guys this gift and you all cried out “No, I don’t want your gift”.
That’s rude.
I honestly don’t know what to say except to learn the friggin patterns…those who shorted SD and DPTR were on the right track and I am heartened to see TIMalert testimonials like:
I shorted DPTR at 5.84 and covered at 5.57 for $77 dollars profit after commission.
-YG
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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%)
