BHRT
This may be a delayed optimistic reaction to the news on the 24th, but it closed up over 114% and I am a skeptic about it continuing much longer. Fade weakness cues. Might begin with north spiking, so be patient or go long on a scalp, if you are impatient.
CLKZ
Two huge red dumping days in the pump and dump that climbed by inches for days then spectacularly dived. Certainly it could stabilize, but I am more interested in some last gasp reddening to short into on weakness cues. I would be flat if it looked like it was going nowhere or gently up on Friday. Better late than never.
MMR
Although we may see a push toward 14.50 I think this 3 White Soldiers stock is getting a bit top heavy. The volume has not dried up here yet so it may not come Friday, but you never know. I would like to short fading momentum here or weakness. Profit takers are fast approaching, given the option activity here.
HSCO
This has been promoted before. The outcome will likely be the same, as it is for all true pump and dumps. Up over 281% some correction is just around the corner. Stalk this patiently and fade weakness cues. Might have some more greening out of the gate, but unless you are in overnight it is probably best to wait for the fade. That may come fairly early, so do not despair.
EEE
Lame chart for long term buyers. Looking more tired every day, this keeps advancing on nominal volume prints. The firm is not of any quality so the excitement is bound to wear off soon here. Another 2 test may fail near there, yielding a fade. Or wait for the usual list of short entry cues, like green to red, or high out of the gate selling pressure, etc.
CERP
News related moves have pushed this up lately. Up more in after hours, profit taking might come into play soon. Volume is already tapering off a bit, even though the daily print is enormous. Possible spiking early or at the bell, then some fading action might be shorted into. Only get in if it begins to sell off aggressively, though. You can scalp the spiking (if it occurs) long, as well.
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5 comments:
Hi Trader T. I want your opinion. It's about going long on WPCS. Today at 3:10pm it was announced that "The Riley Group" (which is a combo ofRiley Investment Partners...and Telecom Global Inc.) was to buy 100% of the common stock @ $3.50.
As of now, WPCS is trading @ 3.09.
You'll notice it spiked today early in the morning-I suspect this was due to insiders.
The Question: Would you go long now???
((Feel free to comment on anything I have said.))
Adrien:
I tend to avoid plays like that. I prefer short selling on profit taking, panic, pump scams, etc.
Your post reveals an interesting point, which is that market gamblers tend to try to naively exploit what they perceive to be freak situations, with hard to isolate and actually wildcard variables, hoping they can profit from what are actually low % odds entries.
Pro's, on the other hand, stick only to what they know perfectly and operate with easy to implement trading rules, involving chiefly the exploitation of other ***traders***, their errors, panics, and human nature actions or failings, as opposed to betting in connection to the actual stock, the values or its fundies, etc.
I would not go long now (obviously, it could see 40 cents of upside but I do not speculate like that) because I am not interested in a play like this, for the reasons mentioned above in comparing and contrasting losing vs winning traders attitudes and approaches to the stock market...
Well put Trader T. It was a gamble and I didn't play it.
The Deal with Me: I'm constantly asking myself W.W.T.S.D.?? (What would tim sykes do), or rather what would tim sykes do if he were still going from the long side. This is what I've chosen, though I agree with you that the short side of pumps is much more certain. ...Anyway, is there room on your blog to discuss longs?? (I've been looking for other traders to talk with) ----adrien
What would Tim do?
If you read my original response, it would explain much. Great traders reject anything they do not fully understand and have down cold, typically. They are niche masters. They are not gamblers.
Because Sykes knows that shorting pumps is easy pickings if borrows are found, the predictability seals the deal. Most moves in the market are random short term, pumps are not. Hence, the strategy.
Have you tried E-mailing Tim regarding this stock and reasons for going long?
Adrien:
I do post some long picks. With some exceptions, most of my scans are short biased, because that is what I understand most.
I tend to only pick (or trade) what I know perfectly, pet setups and situations and rules I have mastered and have down cold. See my other response for why...
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