Trade recap for March 11th

Trades at IB:
SLD   5,000   SNGX   false   Stock   0.2650   USD   SMART   09:30:43       6.62
SLD   5,000   SNGX   false   Stock   0.2600   USD   ARCAEDGE   09:31:38       6.50
SLD   5,000   SNGX   false   Stock   0.2510   USD   ARCAEDGE   09:34:06       10.04
SLD   5,000   SNGX   false   Stock   0.2525   USD   ARCAEDGE   09:35:03       10.10
+   BOT   3,000   ZANE   false   Stock   3.130   USD   SMART   15:03:07       15.00
+   SLD   1,500   ZANE   false   Stock   3.260   USD   ISLAND   15:05:17       7.50
+   SLD   1,500   ZANE   false   Stock   3.290   USD   ISLAND   15:06:06       7.50

Daily profit: $290.99

Disclosure: Short 3,000 AENY. No positions in any other stock mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

This entry was posted on March 11, 2010, 4:45 pm and is filed under All Categories. You can follow any responses to this entry through RSS 2.0. Both comments and pings are currently closed.

19 Comments

#1 by tbohen on March 11, 2010 - 4:49 pm

What prompted you to cover ZANE premarket? I was watching it premarket and thought to myself, damn this thing is going to fall apart without me.
- #2 by Reaper on March 11, 2010 - 5:39 pm
  
  It was the fact that it has spiked big most previous mornings … I wanted to realize at least some profit.
  - #3 by tbohen on March 11, 2010 - 5:56 pm
    
    Ok, so nothing in the pre price action spooked you? I was thinking maybe I totally missed something since to my untrained eye the pre action looked very favorable to a short.
#4 by James Krieger, M.S., M.S., no B.S. on March 11, 2010 - 5:04 pm

I totally screwed up my overnight ZANE short, just like I did with IFLG. Lost big on it…although made up with good trades in other areas. Blog post to come later tonight
#5 by mordy on March 11, 2010 - 5:34 pm

reaper do you agree that tim screwed up by buying zane when he knew a bunch of his subs and people that follow him were still short he pissed off subs and followers for a stupid 3k pos it just dosent make sense and yes that spike was only cause of him you know that
- #6 by Reaper on March 11, 2010 - 5:41 pm
  
  Tim is a day trader. He did not trade against his subscribers as probably five hours passed between when he covered and when he bought. I really don’t understand why anyone would’ve remained short through the morning spike and then all afternoon, unless they were a fundamental short. If you are shorting it based on fundamentals then a little spike should not be a cause for concern.
  - #7 by ShortBus on March 11, 2010 - 5:55 pm
    
    Actually, I think that is a poor strategy for Tim. Really stupid. You just should not trade against your subscribers, even if it was 5 hours, there are plenty of other stocks to trade.
#8 by mordy on March 11, 2010 - 5:48 pm

the volume was dead and the price was gona go down till tim bought it even if im shorting on fundamentals tim buying subs following momo traders jumping on shorts panicking then the force buy in that’s what i was nervous about
#9 by mordy on March 11, 2010 - 6:49 pm

reaper what get into you to pick a fight with cody i always saw you as the nice quiet guy
- #10 by Reaper on March 11, 2010 - 8:00 pm
  
  I was just looking at everybody’s tweets re: the whole ZANE thing and saw his tweet … he is dangerously wrong about borrows and short squeezes; once borrows are gone (with a high short interest) and shorts get forced buy-ins is when it is really dangerous to be short and when you get massive short squeezes. I’ve been in that situation a few times.
  - #11 by tbohen on March 11, 2010 - 8:14 pm
    
    Yeah I was confused by that as well, if the shorts are getting forced in and half the numbnuts are ignoring the notices and getting bought in at market, shew talk about a recipe for a real “short squeeze”, pretty much the EXACT opposite of what he was describing.
#12 by Reaper on March 11, 2010 - 8:01 pm

Tim’s last trade had been a buy to cover (so a buy), so he was buying about 23 hours after his previous short … I really see nothing wrong with that.

ShortBus :

Actually, I think that is a poor strategy for Tim. Really stupid. You just should not trade against your subscribers, even if it was 5 hours, there are plenty of other stocks to trade.
- #13 by Reaper on March 11, 2010 - 8:01 pm
  
  That being said has given him some negative PR.
#14 by Reaper on March 11, 2010 - 8:02 pm

Correct. Action in pre was fine.

tbohen :

Ok, so nothing in the pre price action spooked you? I was thinking maybe I totally missed something since to my untrained eye the pre action looked very favorable to a short.
- #15 by tbohen on March 11, 2010 - 8:15 pm
  
  Cool, not that I have any idea what I’m doing, I just was shocked when I saw you covered in pre, when I was thinking totally the opposite. Based on the current price action though, I was NOT taking into consideration the earlier morning spikes.
  
  Hey I guess we both are right.. How convenient!!
#16 by Big T on March 11, 2010 - 9:36 pm

Several things come to mind here.

As I posted here: http://answers.timothysykes.com/why-is-trading-so-hard
…one of the things that comes to mind is that on ZANE a change in the trade managing landscape had occurred.

Tim covered very early and posted an alert to private that all his subs could see. This was probably also announced by Reaper in the main window, the chat log history does not go back to that point if I am not mistaken.

The unusual big volume on this spike, unlike the previous 4 over the past 2 days, was a big red flag. Tim was correct, without hindsight benefit, to cover.

He soon posted to Tim Alerts Private to this effect. He also said some critical things to subs. Please log into your account to read that post.

As Reaper noted, this stock HELD 3.00 in consolidation for hours after the first spike. Why would you STILL be short?

I am the biggest ZANE long skeptic there is, just see:

http://traderbigt.blogspot.com/2010/03/confusing-individual-play-outcomes-with.html

And even *I* would have covered went flat or went long. No way am I still short.

Worse, you KNEW 5 hours before the afternoon spike that Sykes HAD covered, and in his post he said:

“i would have flipped from short to long would it not be unethical for me to trade against my slow-as-$%$^ subscribers”

So why were you *still* short on the second late day spike?

It was time to go long, or cover and do nothing, but not remain short. As Tim said, he did not IMMEDIATELY go long on the FIRST morning spike, to prevent subs from becoming confused and as a courtesy. By the afternoon, it should have been obvious that the winds had changed.

One good thing about Tim is he does try to teach subs to learn the game so he is eventually not needed. He spelled out the short cover rally long options, which is something to learn from these and other related plays, so it was no surprise at all to me that he went long ZANE later on in the day on the second spike. I pretty much saw this coming.

He posted again on his long decision about 56 minutes before the close. None of what he said was surprising, it was instructive and a good learning experience.

Learning to think for yourself and *manage* live plays is one thing that is essential to master, and Tim has tried to do this in blog posts and trade recaps by explaining reasons for entries and exits applied to stocks that are alerted. This game is dynamic, not static…
#17 by Timothy Sykes on March 11, 2010 - 10:11 pm

Hey mordy and other dumbasses, had u bothered to read y alert i said this was a potential buy, gave it all day for it to fall apart and yet it didnt…not other stocks to trade when this pattern i know full well…if this thing spikes to 4+ tomorrow, i’ll be a hero for having warned everyone early…if not then i’m a pumper…screw u all for not reading my alerts or learning from y dvds that failed morning panics becoe morning spikes, i have to push my dvds harder

PS not 1 person canceled tonight, strange…i dont think there were any short sellers left, and if there were, they arent my students, stock promoters trying to discredit me
#18 by Lakelife on March 11, 2010 - 11:30 pm

Tim,

With all due respect, what is with the hostile attitude to your paying subscribers lately? I’ve seen you call them dumbasses, morons, ignorant, and I think I saw a pissant today. I know its easier to call people this over the net vs in person, but I expected some professionalism when your asking $50-99 a month.

My renewal does not come up for a while, but you have me thinking. I want to trade stocks and make money. Not to keen on links to your online fights, nor the increased hostility to questions/comments from paying customers.

Anyhow, good luck Friday. I just thought I’d throw my 2 cents into the hat.
#19 by Timothy Sykes on March 12, 2010 - 1:48 am

There is no professionalism when I get accused of fraud, manipulation, frontrunning…I simply am not gonna take it…I’ve been responding very nicely and politely, but it all goes down on LiveStock tomorrow

PS point taken

Comments are closed.

These Terms of Use applies to my Reapertrades.com and my GoodeValue.com blog.

I write about stocks and other investments. I am not a registered investment adviser and I will not and cannot give personalized investment advice. If you wish for personalized investment advice, please consult with someone who is a Certified Financial Planner (CFP). These individuals are qualified to help you; also, find one to whom you pay an hourly fee, to ensure that your adviser has no conflicts of interest. To find a CFP near you, visit the CFP Board’s website.

When I write about a stock that I beneficially own, I will attempt to disclose that fact at the end of an article in which I mention that stock, unless I own the stock in a hedge fund, mutual account, managed account or other account that I do not control. Because this is a day-trading blog I may close or re-open a position in a stock without timely notification of the readers of this blog. This blog is for informational purposes only and you should not consider anything I write to be investment advice.

I will use my best efforts to disclose any conflicts of interest of which I am aware with regard to stocks, companies, or products about which I write.

I have never been sanctioned for violations of securities laws, and I have never been barred from the securities industry or convicted of any felony or misdemeanor whatsoever. However, I make no guarantees about the accuracy of my statements and I will not necessarily update statements that later turn out to be false. Because I aim for accuracy, I encourage anyone who finds errors to use the contact form to point them out to me.

I provide the material on this site for informational purposes only. No mention of a particular security constitutes a recommendation to buy, sell, or hold that or any other security, nor does it mean that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. I cannot and do not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment or methodology, or the potential value of any investment or informational source. Site users bear sole responsibility for their own investment research and decisions. Anything written on this website is solely the opinion of the author unless it is clearly and expressly stated as fact.

Category labels are not necessarily correct descriptions of articles in those categories.

Twitter

I post comments about stocks on Twitter and those comments may appear on my blog in a sidebar. My disclosure policy and trading policy does not apply to my posts on Twitter or anywhere else on the internet (such as Motley Fool CAPS and Yahoo! Finance message boards), only my blog itself. The only disclosure policy I will follow when making posts on Twitter or websites other than this blog is that I will use best efforts to disclose when I hold a position in a stock.

I will occasionally tweet about stocks I trade. My tweets will often be delayed and thus attempting to trade based on my tweets will likely lead to losses. I discourage anyone from making trades based on my tweets. My tweets are not recommendations to buy or sell a stock. They are for informational and educational purposes only to give my readers a feel for how I trade and to convey my opinion on stocks about which I may write.

Taxes

I may occasionally write about tax issues for traders. I have no training in tax law (or any kind of law) and nothing I write is to be construed as tax, financial, or legal advice. I recommend The Tax Guide for Traders by Robert Green. After purchasing the book I retained Green's firm to prepare my taxes and they currently prepare my taxes. I receive no money from the firm for promoting them and the only money I receive from recommending them comes from my Amazon.com affiliate link.

Recommendations and Affiliates

I only recommend products or services that I believe are useful. For some products or services I recommend I am an affiliate and receive a percentage commission based on product or service sales from those clicking my affiliate links. Every product for which I am an affiliate I am also a happy customer and I am an affiliate because I like the service or product. I used to be an affiliate of InvestorsUnderground (IU) stock chat, for which I received 50% of a new subscriber's first month's payment and 25% on an ongoing basis. I no longer recommend InvestorsUnderground and I have not received any affiliate payments from them since December 2010. I am no longer a member of InvestorsUnderground stock chat; my membership ended at the end of 2010. Please see this post on why. I subscribed to IU since its inception at the beginning of 2009 and I paid the standard rate of membership for charter members, which was $99/quarter (I also was a member of the free predecessor chat, Green on the Screen, for 6 months starting in summer 2008). I am an affiliate of SpeedTrader (although I have never earned affiliate commissions from them); I use them and recommend them to any person who actively daytrades OTC stocks. I am a happy customer of Amazon.com and all my links for books use my affiliate link. I am an affiliate of Timothy Sykes. Read on for more information on my relationship with Timothy Sykes. In the future, I may enter into additional financial arrangements for recommendations or affiliations. I will attempt to keep you informed of the details of any such arrangements.

My Relationship with Timothy Sykes

I am an affiliate of Timothy Sykes, for which I receive 35% of the purchase price of any product ordered using my link. I am a TimAlert lifetime member (for which I paid $2,000) and a lifetime subscriber to PennyStocking Silver (for which I paid $1350); I have also purchased Sykes’ DVDs Pennystocking 1 & 2 and Sykes' Learning Level 2 DVD (I have since given away my copy of Pennystocking 1 in a contest on this blog and I have re-sold my copy of Learning Level 2). I received the TimRaw DVD as part of the 2008 Las Vegas seminar I paid for and attended; I received TimTactics and TimFundamentals Part Deux as part of the 2009 Las Vegas seminar package that I paid for and attended. At both of Sykes' seminars I attended he bought a round or drinks for me and everyone else at the post-seminar party. At the 2009 Vegas seminar I also purchased $250 ($300 with tip) worth of drinks for everyone (pursuant to the promise on my blog of buying a round of drinks). I moderate/administer Tim Sykes' TimAlerts stock chatroom, for which I am paid based on the average number of people in chat during trading hours. I also assist with Sykes' Trading Challenge and am paid for that. I collaborated with Tim Sykes on the Read SEC Filings DVD published by Tim's company, Bullship Press, and I receive royalties on every sale. I spoke at Sykes' 2010 seminar and as compensation I received free admission and free dinner the first night of the conference as well as a copy of the DVD that was made from the seminar (The New Rules of Pennystocking). I will attempt to keep you informed of any changed or additional aspects of my relationship with Timothy Sykes in the future.

Comment Policy

Ownership of and responsibility of the comments remains with those who post the comments. I am not responsible for the statements of those who leave comments. I reserve the right to delete any comment for any reason whatsoever, including but not limited to the reasons that the comment(s) in question are spam, defamation or obscene.

Privacy Policy

I use third-party advertising companies to serve ads when you visit this website. These companies may use information (not including your name, address, email address, or telephone number) about your visits to this and other websites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here.

* Google, as a third party vendor, uses cookies to serve ads on this site. * Google's use of the DART cookie enables it and its partners to serve ads to my users based on their visit to my sites and/or other sites on the Internet. * Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.

Email Privacy Policy

Users’ email addresses will never be sold to anyone, ever, whether given to me by signing up for my email list or by leaving a comment.

Privacy Limitations

The only personal information I currently collect consists of email addresses, IP addresses, and information related to user comments and emails. I may disclose users’ email addresses, IP addresses, comments, emails, or any other information regarding users, pursuant to subpoenas, court orders, or other requests (including criminal and civil matters) if I have a good faith belief that the response is required by law. This may include respecting requests from jurisdictions outside of the United States where I have a good faith belief that the response is required by law under the local laws in that jurisdiction, apply to users from that jurisdiction, and are consistent with generally accepted international standards. I may also share information when I have a good faith belief it is necessary (a) to prevent fraud or other illegal activity, (b) to prevent imminent bodily harm, (c) to comply with these Terms of Use, (d) to respond to claims that any information published on this website violates the rights of third parties, or (e) to protect the interests of my users or others. This may include sharing information with other companies, lawyers, courts or other government entities.

Arclite theme by digitalnature | powered by WordPress

Entries (RSS) and Comments (RSS) TOP

Reaper Trades

Reaping Profits by Trading Penny Stocks