How I Just Traded Dendreon Corp. (DNDN)
Posted by Timothy Sykes on Tue 7th of Apr, 2009 03:05:53 PM
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Yesterday, I sent the following to TIMalert subscribers:
Shorted 1500 DNDN at $6.80ish…up from $4 mid-day Friday purely on hype/short squeeze, no drug news expected for several weeks, its tried to break below 6.80 several times today, the sellers are getting more aggressive, if it does crack, it could/should have a fairly easy path to the low $6s…volume is fading bigtime but the stock is still up on the day so gotta be extra careful and cut losses quickly if it keeps spiking
…actually got executed on my short at $6.74, but I was scared of missing out on a potential big tank…funny enough you can see I was right about it fading, but the big crack never came and I covered at $6.55 for just under $300 in profits when I saw support in the low $6.50 range (always trade conservatively when a short refuses to go negative on the day).
See how other TIMalert subscribers played it and don’t laugh at some of the small gains, remember the service only costs $30/month and it’s incredibly rare for anything in finance to actually pay for itself within a few days/weeks:
Shorted at 6.86, covered at 6.60, banked $250 after commissions. Good job Tim.
-Phil
No more shares of DNDN to borrow at TOS. +$248 , Bought back at 6.59
-MCB
Nevermind, stopped out at 6.42, total profit after comms $143.42, $123 of those thanks to reshorting
-G.S.
Made $485 on DNDN while I was sleeping. He he he.
-Erik
out @ 6.64 for a $120 take
-J.K.
out @ 6.71 made $30 after commissions
-John
Just signed up for your TIMalerts newsletter. I shorted at 6.86 and covered at 6.7 for an $80 dollar profit
-V.
Made $20, should have made $150, good point on only getting greedy while the stock is red for the day. Sold at 6.85 covered at 6.80
-G.S.
Maybe today is the big tank–I won’t know because I’m flying back to NYC from a cool west coast trip so I’ll miss today’s trading session and I’ll still be flying when you read this post.
What else can you learn from this trade is a.) when a piece of crap stock (as determined by its long-term chart) spikes based on hype and has fading volume, shorting for a nice fade/big tank is a good idea and b.) be careful of short squeezes as even fading stocks don’t always go straight down and c.) my TIMalerts service aims to find solid trade setups of 50 cent-$1/share gains, but when a stock doesn’t act perfectly, take small gains and be happy that you’re doing better than 90%-95% of other traders!
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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%)
