No graphs tonight. I’m beat after doing some more work on my DVD.
SMI – No play. Up on news that it will not be destroyed by litigation. Lack of intraday move suggests it has found the right price.
CHLN – Meh. Earnings. Gap and crap a little today, but I don’t anticipate any big moves.
NCST – Buyout.
NLST, SNIC – Nice breakout. Watch.
NANO – Broke out today. Might be nice tomorrow on green.
SNVP – What a waste of a beautiful pump. I heard Schwab had shares. Was beautiful morning panic on the gap down open.
Disclosure: No positions in any stocks mentioned in this post. I have a disclosure policy and you can find all my disclaimers there as well; those disclosure & disclaimers are incorporated by reference into this post.
JDSU has a nice looking chart, small ADR but it could break out this morning. Mad Money pump.
CAAS beautiful chart, up on earnings.
COMS going to open above resistance
buyout by HPJ. cash.
Hmm, UBET a buyout too.
AMD gap above resistance
UBET looks nice too
KNDI maybe good above 4 if it gets there, on news of electric car.
Damn COMS is a buyout, my bad.
YUII gap to resistance, looks good above 6.50.
AMD looks the best.
By the way, I apologize for that ill-timed comment on SNIC yesterday. After I listened to your re-cap this morning and looked at the time of trade vs. comment you might have said “no shit” or something like that.
resistance at 3.30 for NLST? … it broke the $2 resistance level
Anyone gutsy enough to buy still?
Nope
NANO breaking out.
Hope you played it. I had no excuse. Either on the break of yesterday’s highs or on green it was a no-brainer.
http://www.vancouversun.com/Male+enhancement+drug+arouses+investor+interest/2209733/story.html on seems like another pump and dump is going to go wrong for someone GHLV
Nope, I just don’t feel comfortable buying these yet, I’m trying to get a feel for it. I only have one day trade as well so trying to spend it wisely.
If it holds up and crosses 1mil shares I may go short, very simalar to the pattern yesterday, I may have just missed it though, it broke at 9.98 and volume looks to be fading.
Damn, I bet that was a short squeeze on PLA, spiked very fast on massive volume.
PLA talks of buyout, crossed bloomberg wire. I shorted it for a risky $90 and am out now.
NANO
“Hope you played it. I had no excuse. Either on the break of yesterday’s highs or on green it was a no-brainer.”
Yep you are right, missed opportunity that was well worth a day trade. Beautiful chart with several easy buy in spots.
Good play, I was to late to the party on that one.
Just look at the charts on NANO, NLST and PLA, I guess that’s why I’m so biased to short HOD breaks. They look so predictable to me. NANO was about 800K shares traded and I should’ve entered, kinda busy at work trying to leave at lunch so not concentrating hard enough, trading really takes a lot out of me when I’m in, watching every tick.
Why you guys think NANO is up, checking its cash flow statement and balance sheet, it lloks like worst than any other year?
Looks like a perfect technical breakout to me.
SORL breaking out on low volume, looks like some of these other plays a few days ago and has earnings coming up.
KNDI near 4
I remember a while back on CAPS you expressed some interest in shorting both 3x bull and 3x bear ETFs. A large, unidirectional move in the underlying index over many days will cause you to lose money if you do this.
What do you think of a strategy where one puts 75% of his money into the index, uses 25% of his money to short the 3x bull, and rebalances daily? I feel like this would reduce the riskiness of the strategy a lot while still capturing the decay of the 3x ETFs
This would increase risk. Anyway, with this strategy there is a very low profit margin. It would not meet the cost of capital, especially considering you need to do continuously adjust your hedges. It is not worth the risk as a real world strategy IMHO. But it is fun from an academic perspective.
Damn, there are some huge sell orders coming across around 4ish.
inability of sellers to drive KNDI back below 4 and large bids at 4 are very bullish. I’d probably re-buy if I didn’t want to do other things (ie work on my DVD)
I just started my 7 hour commute back home.
Level 2 is greek to me so I have no idea what I’m talking about. 🙂
I thought you’d moved to Texas with the new position?
If KNDI is on watch for tomorrow, does that give me a few more muddled sentences and maybe a duck.
In December I will, wife still in school. SHe is transferring to the University of Houston end of this semester. SHe has two semesters left for her masters in accounting, she still only has two B’s, I don’t know what she sees in me. lol
I’ve picked up contracts through 2010 so it’s going pretty good, not selling my house yet though. My business can be a brutal one at times.
In regards to the ultra ETFs:
If you rebalance daily, as in Dan’s sample strategy, your expected return is exactly zero. Ignoring slippage and commissions, you would neither make nor lose any money. If you want to lower the risk of the strategy, you would want to diversify into several pairs of ultra ETFs that track indices with the lowest amount of correlation. Profit margins on this strategy are fairly low, though it should easily beat cost of capital.
It depends what your cost of capital is. Plus, you do have the risk of a forced buy-in on your short position. Last I checked most of the leveraged ETFs were hard to borrow.