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8 Stocks That Fit Some Great Short Selling Chart Patterns

Posted by Timothy Sykes on Tue 24th of Feb, 2009 12:35:38 PM
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The following was sent to TIMalert subscribers around midnight, yup, they were prepared today, the same as every day:

So much for any rally, this market is truly pathetic and now that the major indices like the Dow & the Nasdaq are below their November lows, any long/investors in this market deserves all their losses and more because they’re ignoring basic technical analysis.

A large crash day could come at any time, just as a large spike upwards could occur too…that’s why I’m trading very conservatively right now, I know it’s frustrating, but the key to success in this kind of environment is staying liquid and waiting for those opportunities that arise due to everyone else panicking…

PSPM rebounded 8 cents, wooo hooo, if you look at all the hate comments on my main blog, you’ll see how many suckers got crushed in this…let this be a lesson to you as to how quickly these things can implode once their stench gets to be too bad. Unless this stock gets promoted again, it’s boring and dead to me.

ARNA, like the overall market, tried to bounce in the morning, but failed and headed gradually lower…still overvalued, but it’s going to be tough for it to drop much more, still a potential buy for me…

EMAG rose 124% yesterday after announcing they would be acquired…10 days after they said the merger was off. Make up your minds people, for now the stock is dead to me.

GOE dropped $10/share at the open then gradually went higher throughout the day, turned out to be a good buy, but waaay too illiquid and that’s a risky pattern to buy into. No play here

SUF was good for a 30% intraday drop, great intraday chart pattern, but not a truly ideal short since it didn’t really go red—and even if it did, that’s not something to short since it had already dropped soooo much, but it was good for some advanced PennyStocking students, namely TBohen:

Short Sold 5000 SUF @ 1.30
Bought To Cover 5000 SUF @ 1.12

+$853

NCX is another takeover, no play here guys, seriously please stop emailing me…wait for normal stocks to go up 200%+ in a day, not mergers/acquisitions…learn the rules already, I beg you.

JRT jumped with its newfound 1-10 reverse split shares, now back in compliance to be over $1 to stay listed on NYSE. If it surges more, its possible spike, but this could easily become a $4-5 stock since its down now from $100+ (post-split prices)

ZN has been in an uptrend for a while, now with the stock up almost $3 yesterday to $15+, the shorts are finally getting squeezed…let’s hope for a true Supernova here, which means it’s a potential buy before it’s a potential short…chart’s gone vertical on volume that it won’t be able to hold for very long…I’m drooling to short this, but will wait for signs of it rolling over. If you don’t know what pattern I’m looking for, may I suggest you watch my PennyStocking Part Deux DVD while we wait for this thing to implode.

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  • JF
    I don't think ZN is ever going down. Thought it was rolling over this morning and was quickly stopped out. I wasn't going to hang around too long if I was wrong which I was. Still looking to short but maybe not today.
  • Gee
    Tim, about ZN-- I was of the opinion you don't mess w/ O&G plays.
  • Moishe
    Tim, GOE have a NAV of $10.90!
    With that valuation and kind of supernova pattern, i think it's time to short!
  • Moishe
    You say we shouldn't trade more than 1% of volume, if we short 100 shares of GOE at $42.20 and cover at $10.90, i will make $12,117 of pure profits.
  • Big T
    Tim, I thought a play like ZN was not your cup of tea, the right pattern for a Supernova short play, but not a real pure crap, hyper. It went up again, because the market rallied on Big Ben and O's speech anticipation of giving him one more chance to "splain" himself, but it is really getting overextended. I cannot find any recent resistance above the current price close. I think this tanks as soon as tomorrow, depending on the Dow mvt on Wednesday 2-25-09. It could tank at least 5% by mid day on that day or very soon after. If you can get the shares, it seems to be a play...
  • Can't believe you didn't have ANDS on your list! Monday was the first down day- followed by two days of tanking.

    Couldn't find shares of ZN at TOS all week- too bad, since today was it's day of reckoning.
  • Uhhh Evan ANDS was on my list the day before, it bounced, taking it out of contention..yesterday afternoon i posted on TMalerts.com i was tihnking about shorting it and it not only made my premarket watchlist today, it also made me $700, get informed and sign up at http://www.timalerts.com
  • Gee
    Wow 17 and a half to 11. IB have shares?
  • nobody seems to have had shares of ZN, perfectly predictable pattern, sad to see it go to waste :(
  • nick
    tim EMAG is being acquired by a completely different company now, Amicas, at a different price. The previous acquisition fell through because Stanford International was financiang the deal for the acquirer. it has nothing to do with EMAG making up their mind, come u have a little better understanding of merger arbitrage than that dont u??
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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%)