Mentions of AEHI in chat:
[May 12, 2010 12:00:56 PM EDT] JC AEHI hod
[May 12, 2010 12:17:32 PM EDT] JC AEHI seems pumped hmm
[May 12, 2010 12:22:32 PM EDT] JC frigging… AEHI new hod
[May 12, 2010 12:24:59 PM EDT] SteveS AEHI how high will that go?!
[May 12, 2010 12:28:03 PM EDT] Reaper AEHI omg
[May 12, 2010 12:28:09 PM EDT] JC wtf…AEHI..
[May 12, 2010 12:30:28 PM EDT] Reaper shorting a bunch of AEHI … very risky
[May 12, 2010 12:30:46 PM EDT] Reaper short 3100 AEHI @ .97055
IFLG a nice short (in SogoElite, not shown below):
[May 12, 2010 2:57:57 PM EDT] Reaper shorted 1k IFLG @ 5.35 @ sogoelite … very tight 10 cent stop
[May 12, 2010 2:58:50 PM EDT] Reaper I like the big offers on IFLG @ 5.37 and 5.40
[May 12, 2010 3:05:59 PM EDT] Reaper covered 500 of my IFLG @ 5 still short 500
[May 12, 2010 3:09:42 PM EDT] Reaper out IFLG @ 5
Disclosure: Long 60 BRK-B, short 2 BRK-A, long 400 VRMLQ. 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.
It probably wouldn’t have been so blah if my quotes at IB had been working in the premarket. I missed huge gains in RTK and AXL. Instead I made $14.01 by buying RDN and AFN. Both AFN and RDN were pre-leader longs. I played them both well; they just did not continue to go up.
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.
GGC was negative in pre-market. I bought it just a minute after open after it jumped green. I had incredible patience for me, selling 10 minutes later after it twice failed to take out big offers at $18.10. This turned out just like I thought it would.
Dumb play on VHC, I had the right idea but I was slow to sell and buy. I am generally bad at quick-moving plays like this that can go either way.
+ SLD 3,000 PAL false Stock 3.110 USD SMART 14:25:52 15.00
+ SLD 3,000 PAL false Stock 3.088 USD ISLAND 14:28:29 15.00
+ BOT 3,000 PAL false Stock 3.020 USD ARCA 14:59:31 15.00
+ BOT 3,000 PAL false Stock 3.030 USD SMART 14:59:48 15.00
PAL was what I call a fat-fingered short. I don’t mind going reasonably large in these; risk/reward is good although this strategy leads to occasional big losses. In this case it was CNBC pumping it. 40 cents (18%) vertical moves in 30 seconds are in general good shorts unless there is real news. It didn’t turn out as I predicted but I still had a halfway-decent profit.
For your reference, here are my year-to-date profits for the above-mentioned trading strategies:
This brought tears to my eyes … never before have I put a limit price on a big order so far below the market price, but alas there were no shares.
Here is how it played out … I caught this on the Scottrade MarketMovers list around $1.50 on the way up, was ready to short as the bid backed down to $1.30, could not find borrows, but hoping that IB could find borrows I placed a limit short for 5,000 shares at 90 cents (yes, 40 cents below market) … no shares became available.
This is the one-hour chart from 3pm EST to 4pm EST today.
This is a perfect example of what I call “fat-fingered shorts” … stocks with little volume where the price and volume shoot straight up on no news. They are likely caused by traders accidentally placing market orders instead of limit orders. This is one of the easiest charts to short sell. I usually run across one decent one a week. Of course, you need to get in on these quick; because of these constraints this is only a viable trading strategy for people who are already full-time daytraders and the potential profit is limited. As of this re-posting on 7/27/2009, my net profit in 2009 from similar trades is $2,505.99, with an average profit margin of 0.79%.