Apparently there was an analyst upgrade that shot the stock up. Pretty ironic in a overall down day but I don’t think I played this wrong so I can live with a 13% loss. New opportunities await.

I shorted Tenneco, an auto part company at the end of Friday’s trading day. This stock has jumped from 2.50 to 7 bucks in a matter of 10 trading days on earnings. So the company had great earnings? The company posted a 1.05 dollar loss compared to a 13 cent profit a year ago. Now I don’t understand the run up, but the impeding run down should be more practical.

I’m shorting this based on 3 main reasons.

1. The stock has gone up 8 consecutive days with volume increasing each day. Friday was it’s first down day with fading volume. This means the accumulation of buyers has run its course.

2. The intraday chart had a low of 6.18 and the fade at the end of the market will most likely continue, breaking that support level and falling below 6 where it will take out other stop losses. There would be no foreseeable support after that. However, I’m not looking to hit a home run as I haven’t done too much research. Therefore I’m still willing to set my stop losses at about 6.85. Hopefully no other bullshit will happen to me like my last post.

3. I got this pick from Tim Sykes. Since other people trade with him, there is what I call a Sykes effect. He says short, lots of people do, dragging down the price.

Here’s a chart of what I’m talking about. I’m writing this now because I don’t want it to appear as though I always post after the fact because anyone can say anything. This also allows anyone else reading this to get in tomorrow since it closed basically at the same price I got in.

I shorted a stock CBOU, a coffee company at 4.96 and it tanked to 4.64. Being the nit that I am, I decide to set a stop loss at 4.75 just to lock in some profits. Little did I know my stop loss executes so I am sort of bummed. However, when I look to see that it was executed at 4.85 I am pissed off. How the hell does it execute 10 cents above my stop price. 10 cents is alot considering its a 4 dollar stock and I got screwed. I’ll be more careful next time, since these stocks are more illiquid and people can see your stop loss.

Unbelievable!..

Since I’ve been trading charts more, this is an example of an intraday breakdown. I honestly have no clue what this company does aside from the fact that it is called China Precision Steel Inc. but It just ran from 1.5 to 3 on earnings. Take a look below. As of this post, the stock is trading at 2.51 with no support. I did not find this chart myself and must credit Tim Sykes for his read. I set a stop at 2.61 just to be safe.

Recently, I’ve been playing breakouts as many companies have formed strong bases. I got in late here and actually entered after the break out but the stock had legs and I rode the momentum. As of 8:00am PST however, the market looks weak and I’d rather just take profits. As of this posting the stock has jumped to 6.24.
Heres a chart