The Best Source for Penny Stock Insight
After my fun with my website today I have little energy left for a watchlist. Here is a short one. Do the homework yourselves:
Potential long: RTK, ACAS
Potential short (but I really have no clue): FNM, FRE
No clue (but fun to watch): GGC
Disclosure: No positions. I have a disclosure policy.
SPDE was a nice short on the morning panic. It would have been easy to play it profitably for 40 cents as it went red, just like I said on yesterday’s watchlist. OPXA did almost nothing. Rather than trade SPDE, I saw Rentech (RTK) up big in pre-market trading on a great earnings release. It hit a high in pre-market trading of $1 and then opened around $0.88. Buying it was a good idea:
+ BOT 2,000 RTK false Stock .910 USD SMART 09:30:46 9.10
+ SLD 2,000 RTK false Stock 1.000 USD SMART 09:37:31 10.00
+$160 (8.74%)
Pre-leaders that have strong news but open significantly below their highs in pre-market trading are often great longs. Another good trigger for going long pre-leaders (or any volatile stock) is when it crosses an even-dollar amount.
BOT 1,000 YMI false Stock 1.03 USD ARCA 09:33:35 5.00
SLD 1,000 YMI false Stock 1.10 USD AMEX 09:40:35 5.00
+$60 (5.80%)
YMI was another pre-leader with news (drug news that was not that great in my opinion). I bought it as it crossed $1 (when it was alerted by Muddy in the Investors Underground chat) and I sold it after it backed off of its high of $1.20.
My lone loss of the day was a TimAlerts scalp play that I should never have traded. It was my watchlist stock SPDE that he shorted, but by the time I got the alert it was way off the price he traded it. Some may ask why I scalp stocks that Sykes trades. I do it because it is easy money (as long as I am quicker than most of his subscribers). Rarely does one come across a situation where one can predict exactly when a bunch of buying or selling pressure will occur. It is imperative to derive profit from such circumstances. This does not mean that I do not also often trade alongside Sykes on his alerts: I do. It just means that this is one other little niche for me to profit from. (For those searching for easy profits from mindlessly following Sykes’ trades, be aware that I have made almost twice as much money by making trades in the style of Tim Sykes than by following the trades of Tim Sykes.)
+ SLD 2,000 SPDE false Stock (SCM) 2.630 USD DRCTEDGE 09:41:03 10.00
+ BOT 2,000 SPDE false Stock (SCM) 2.743 USD ISLAND 09:48:00 10.00
($246.00) (4.69%)
My last trade of the day was a traditional Tim Sykes-type trade. I bought a steady runner that was finishing the day strongly, in anticipation of a gap up tomorrow. That stock was of course RTK; I sold it in after-hours trading while dealing with my website troubles. If I had not had to work on my blog I would not have followed it after hours and I would have planned to sell the next morning.
+ BOT 1,000 RTK false Stock 1.270 USD SMART 15:47:57 5.00
SLD 500 RTK false Stock 1.3900 USD DRCTEDGE 17:52:13 BookTrader 2.50
+ SLD 500 RTK false Stock 1.382 USD DRCTEDGE 17:52:15 BookTrader 2.50
+$106.08 (8.32%)
Today’s profit: $80.98
Disclosure: No positions. I have a disclosure policy.
For some reason both this blog and my GoodeValue.com blog have stopped sending me any sort of emails on August 8. They use different versions of WordPress and are both hosted at 1&1. Even changing from a PHP mail() function to SMTP did not help. Upgrading this blog to the newest WordPress version this afternoon (causing some downtime) did not help. If you have any suggestions please leave them as comments.
It seems like this was a server problem on my web host. All my websites were down for a bit this evening and afterward my website’s email function worked again.
I often talk about pre-leaders or pre-market gainers. These are stocks that are up in pre-market trading. They often make for good trades. This video shows how to scan for them yourself. As to trading them, I will write about that in the future; I suggest checking out Muddy’s post about pre-leaders in the meantime.
Disclosure: No positions. I have a disclosure policy.
I’m keeping it short tonight. Not a ton of great things to watch and I was way late getting home after traveling this weekend.
OPXA – positive drug news sent this up from $0.50 to $2.01 Friday. I don’t think it is that great, but I’ll let the price action determine the move. Either way, this should be volatile
SPDE – same deal, up from $0.85 to $3.11, this time on news of a new solid state hard drive (SSD). I am even more negative on this company and will look to short on green to red action.
Tight stops on both stocks would make sense, especially for shorting. Both still have tiny market caps and are very low float.
Disclosure: No positions. I have a disclosure policy.
Profit this week: +$500.64
Overall, not a good week. I lost money on a mediocre trade on GGC short and then missed the great trade opportunity. ICOG was a good trade but about 10% of my ‘fat fingered shorts’ have resulted in Nasdaq trade busts and that trade bust cost me $980. It was still a good risk/reward trade. Today I didn’t focus much on trading because I am still bummed about yesterday and I have new eyeglasses that are distracting me.
Trades today:
+ BOT 6,000 CHINA false Stock (NMS) 2.835 USD BATS 10:46:05 30.00
+ SLD 6,000 CHINA false Stock (NMS) 2.860 USD BATS 10:47:06 30.00
I scalped this for 2 cents when Tim Sykes bought to cover his short. +$88.15
Today’s trading profits: +$88.15
Disclosure: No positions. I have a disclosure policy.
There is not much to look forward to tomorrow. Instead, go back over GGC’s chart and study it. Memorize it. Such great opportunities are rare. Do not be like me: be prepared for the next one.
Also look at SUF as a potential long on strength only. It is a horrid company so I won’t trade it, but it may be good for a second up day.
Disclosure: No positions. I have a disclosure policy.
GGC an easy short once it went negative on the day. It was quick, but a smart trader would have nailed it for $4 per share in under 20 minutes. Unfortunately, despite anticipating this and having my 2000 share short order ready at SogoElite (which had shares of GGC to short), I completely missed the trade.
See the video:
Short 2100 GGC @ 31.062 (at SogoElite)
Cover 2100 GGC @ 30.977
+$177.24
Other trades for the day:
SLD 200 WUHN false Stock (SCM) 4.00 USD ISLAND 09:31:17 1.00
SLD 200 WUHN false Stock (SCM) 4.00 USD ISLAND 09:31:22 1.00
SLD 200 WUHN false Stock (SCM) 4.00 USD ISLAND 09:31:29 1.00
BOT 600 WUHN false Stock (SCM) 3.84 USD ISE 11:06:20 3.00
+$90
+ SLD 2,050 SCLN false Stock (NMS) 4.200 USD ARCA 09:39:12 10.25
+ BOT 2,050 SCLN false Stock (NMS) 4.170 USD ARCA 09:40:08 10.25
+$40.50
Short 1300 WUHN @ 3.798 (at SogoElite)
Cover 1300 WUHN @ 3.585
+$277.28
+ SLD 6,000 CHINA false Stock (NMS) 2.792 USD SMART 15:41:25 30.00
+ SLD 6,000 CHINA false Stock (NMS) 2.780 USD SMART 15:41:28 30.00
+ BOT 6,000 CHINA false Stock (NMS) 2.763 USD SMART 15:42:58 30.00
+ BOT 6,000 CHINA false Stock (NMS) 2.770 USD SMART 15:43:30 30.00
+$118.30
Today’s profit: $703.82
Disclosure: No positions. I have a disclosure policy.
Yes you read that right. The plural of supernova is supernovae. I am obsessive about grammar. By the way, the plural of index is indices, not indexes. Anyway, supernovae are stocks that are up an insane amount, over 100% in a couple days; Tim Sykes originated the term. The supernova du jour is GGC, which I am now looking to short aggressively on the right price action (what do I mean by the right price action? Buy Sykes’ excellent DVD
I am a happy user of Stockfetcher.com. Here is the code I use to scan for supernovae.
show stocks where close gained more than 99 percent over the last 5 days
and price is between .25 and 15
average day range is above 8
and volume is greater than 500000set{ DayChg1 , close – close 5 days ago }
set{ DayChg2 , DayChg1 / close 5 days ago }
Set{ 5DayPctGain, DayChg2 * 100}
add column 5DayPctGain
and sort column 5 descending
Set{5DaysAgoPrice, close 5 days ago}
and add column 5DaysAgoPrice
Looking for my watchlist? This is it. GGC is the stock I’ll be watching tomorrow. WUHN is also almost a supernova but I couldn’t find shares to short. AIG may be interesting, along with other finance plays, but I don’t like trading finance stocks. CMLS also on watch, more likely a good buy tomorrow than a short. I probably won’t play it.
Disclosure: No positions. I am a customer of Stockfetcher.com, subscribing to their cheapest package. I have no other relationship with them. I have a disclosure policy.
Another video recap today.
Here are my trades:
Short GGC 1000 35.514
Cover GGC 1000 37.16
($1626.00)
GGC was bouncy and my entry wasn’t great. I should’ve shorted at $36.80 on break of $37 resistance, not on break of the day’s low.
+ BOT 6,000 SCLN false Stock 4.164 USD ARCA 14:58:19 30.00
+ BOT 6,000 SCLN false Stock 4.173 USD ARCA 14:58:22 30.00
+ SLD 4,000 SCLN false Stock 4.220 USD BATS 15:00:36 20.00
+ SLD 6,000 SCLN false Stock 4.214 USD BATS 15:00:52 30.00
+ SLD 2,000 SCLN false Stock 4.320 USD BATS 15:11:49 10.00
SCLN was a TimAlert. +$661
+ SLD 0 ICOG false Stock .000 USD SMART 16:16:17 30.00
+ BOT 0 ICOG false Stock .000 USD SMART 16:16:27 4.50
+ BOT 0 ICOG false Stock .000 USD SMART 16:15:51 23.00
I had made $980 on ICOG but the Nasdaq canceled all those trades so instead I lost the $57.50 I paid in commissions.
Overall profit today: ($1,022.50)
FRNTQ.pk and WUHN did what I exptected them to do. WUHN a bit too choppy and too wide of a spread to easily trade. FRNTQ.pk easy short but I was distracted; I had a sell order ready but didn’t execute because it was already down 10%. At one point it was down 42% on the day.
Disclosure: No positions. I have a disclosure policy.