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.
#1 by Preston on November 12th, 2009 7:59:36 AM
Quote
JDSU has a nice looking chart, small ADR but it could break out this morning. Mad Money pump.
#2 by Preston on November 12th, 2009 9:08:37 AM
Quote
CAAS beautiful chart, up on earnings.
#3 by Preston on November 12th, 2009 9:09:25 AM
Quote
COMS going to open above resistance
#4 by Reaper on November 12th, 2009 9:11:16 AM
Quote
buyout by HPJ. cash.
Hmm, UBET a buyout too.
#5 by Reaper on November 12th, 2009 9:10:14 AM
Quote
AMD gap above resistance
UBET looks nice too
#6 by Preston on November 12th, 2009 9:11:58 AM
Quote
KNDI maybe good above 4 if it gets there, on news of electric car.
#7 by Preston on November 12th, 2009 9:12:55 AM
Quote
Damn COMS is a buyout, my bad.
#8 by Preston on November 12th, 2009 9:14:52 AM
Quote
YUII gap to resistance, looks good above 6.50.
#9 by Preston on November 12th, 2009 9:23:57 AM
Quote
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.
#10 by johnc on November 12th, 2009 10:06:02 AM
Quote
resistance at 3.30 for NLST? … it broke the $2 resistance level
Anyone gutsy enough to buy still?
#11 by Preston on November 12th, 2009 10:19:28 AM
Quote
Nope
#12 by Preston on November 12th, 2009 10:21:21 AM
Quote
NANO breaking out.
#13 by Reaper on November 12th, 2009 10:55:51 AM
Quote
Hope you played it. I had no excuse. Either on the break of yesterday’s highs or on green it was a no-brainer.
#14 by Luis023 on November 12th, 2009 10:59:16 AM
Quote
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
#15 by Preston on November 12th, 2009 11:01:37 AM
Quote
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.
#16 by Preston on November 12th, 2009 11:38:02 AM
Quote
Damn, I bet that was a short squeeze on PLA, spiked very fast on massive volume.
#17 by Reaper on November 12th, 2009 11:50:40 AM
Quote
PLA talks of buyout, crossed bloomberg wire. I shorted it for a risky $90 and am out now.
#18 by Preston on November 12th, 2009 11:49:34 AM
Quote
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.
#19 by Preston on November 12th, 2009 12:00:47 PM
Quote
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.
#20 by Luis023 on November 12th, 2009 12:03:03 PM
Quote
Why you guys think NANO is up, checking its cash flow statement and balance sheet, it lloks like worst than any other year?
#21 by Preston on November 12th, 2009 12:09:23 PM
Quote
Looks like a perfect technical breakout to me.
#22 by Preston on November 12th, 2009 12:18:19 PM
Quote
SORL breaking out on low volume, looks like some of these other plays a few days ago and has earnings coming up.
#23 by Reaper on November 12th, 2009 1:55:38 PM
Quote
KNDI near 4
#24 by Dan Reagan on November 12th, 2009 1:59:35 PM
Quote
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
#25 by Reaper on November 12th, 2009 2:02:43 PM
Quote
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.
#26 by Preston on November 12th, 2009 1:59:44 PM
Quote
Damn, there are some huge sell orders coming across around 4ish.
#27 by Reaper on November 12th, 2009 2:22:00 PM
Quote
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)
#28 by Preston on November 12th, 2009 2:42:52 PM
Quote
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.
#29 by Reaper on November 12th, 2009 3:15:52 PM
Quote
I thought you’d moved to Texas with the new position?
#30 by Preston on November 12th, 2009 3:13:48 PM
Quote
If KNDI is on watch for tomorrow, does that give me a few more muddled sentences and maybe a duck.
#31 by Preston on November 12th, 2009 3:21:18 PM
Quote
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.
#32 by Hezakiah on November 12th, 2009 10:24:58 PM
Quote
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.
#33 by Reaper on November 13th, 2009 8:52:05 AM
Quote
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.