A Short Selling Chart Patterns That Led to $1,000 For Me & $3,000+ For TIMalert Subscribers
Posted by Timothy Sykes on Tue 28th of Apr, 2009 02:40:31 PM
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The other day, I sent this to TIMalert subscribers because BCRX was up 100% on news of the swine flu, despite the CEO saying they don’t have a product even close to being ready to help at all:
Shorted 500 BCRX at $4.40, very small position…thought i didn’t get it at first, only a few hundred shares available to short at interactive brokers…currently i’m down 30 cents/share on the position, booo hoo $120 loss or so, but there are no more shares left to short, so sometimes I’ve learned I have to risk some pain in order to get short a stock I think will be a big loser…tough, risky strategy, thats why I only have 500 shares…but the CEO os this company said there’s no way he can even help because drug is only in beginning trials…this is a short squeeze, only for the bravest.
And then a few hours later…
Covered 500 BCRX at 4.10…$150ish profit, disappointing, but I’m playing it safe…its had multiple opportunities to fade below $4 and its bounced each time…could be an afternoon fade, but I was going for a quick drop and I’m not going to waste my time watching such a small position…opportunity cost…potential short still, but since this is just the first day and there’s a lot of over-aggressive shorts in this already, methinks we could get a squeeze to to $5ish, not worth the risk to hold right now, will revisist later and hopefully there will be some shares to short (also risk of any new flu news, scarrrry to short with all these variables, maybe thats why there are some serious buyer here
As you can see from the chart, I was off in my timing on my exit–as usual—tanking below $4 on its way to the $3.65ish range just 15 minutes after I covered (boo hoo, an extra $200 or so in missed profits, I’ve had worse, faaaaar worse), but the good news is that my PennyStocking DVD students know I’m not a great timer–as I close out each DVD saying you can do better than me…see the TIMalert subscriber testimonials (remember TIMalerts only costs $1/day and it doesn’t look like there’s any other newsletter out there with daily testimonials like me) and chart below:
My first trade since joining last wk. Covered at $4.01. Made $556. Thanks tIm!!!!
-echo1025
i went long pre-market at 3.51 and sold at 4, tried to short up here, can’t get a borrow. quick $491 profit less commissions!
-andre
covered BCRX @ 3.75 in the men’s room! became an annual TIMalert subscriber last week and I just paid for it this morning
-Adam
Shorted 700 BCRX @ 4.15. Covered @ 3.69 & 3.99 for a quick $142 profit. Thanks Tim.
-Scott W.
BCRX out for a $250 gain, patience paid off there.
-BTB
BCRX in short @ 4.24 on the second runup for the day (missed it on the first, so waited on better entry.) out @3.96 on the second time it cracked 4$ for the day.
potentially alot more downside. but playing it safe as you always say :)
nice 5% scalp.
-David
And then today, the very same pattern emerged so I sent this alert out to TIMalert subscribers:
Shorted 3000 BCRX at 4.48ish…risky since this is a swine flu play and breaking news can spike it, but the sellers look determined, i like the probable double top at 4.80ish and its either gonna fade or collapse…if it spikes quickly, i’ll get out and cut my losses, potential gain of $1500 or so, potential loss of 1000 or so, not the greatest risk-reward ever, but if the volume fades, this should weaken within the next few hours/days back down to the lows $4s, high $3s as momentum traders pile out
…a little less than an hour later:
Covered 3000 BCRX at $4.25…horribly over-protective, the thing was fading perrrrrfectly, but then it couldn’t beak below the $4.20 area despite a ton of selling so I got nervous and got out…boo hoo..made $750 or so and as of right now, its back down to the $4.15 level so all my worrying was for nothing…yup, another screwed up trade by me, but another solid profit too so I can’t complain too much….congrats to those with even an ounce more patience than me, please post your gains on TIMalerts.com, this is another easy one
TIMalert subscribers proved their patience and these are the gains that have come in so far…I’m sure there’ll be more for those even more patient because as I write this, the stock is under $4, threatening to go red on the day…
covered BCRX for a quick $120 in 40 minutes- love the alerts Tim!
-Adam
Shorted 2k shares at 4.38 out at 4.08. +$600 profits Man up Tim. LOL
-Gary B.
Shorted 500. Found em on …E-turd. Got in at 4.32. Still holding on.
-Casey
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|---|---|---|---|---|
| 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: $92,304 (644%)
