Heading into the week I have 3 existing short term trades open. For those of you who are new, I don’t like holding onto these positions for more than a few days but when my stop hasn’t tripped or there is no apparent reason to sell, I let them ride and reassess daily.
As you know from my text and email, I sold PEIX Friday for a profit into the morning gap – easy two day trade. Less than 10% but when it started hitting resistance and the market was red I knew it was time to move on. I think the company will move up from this earnings report but as you know, I’m not into companies, I only care about their stock price for a few days. This is a warfare tactic you can use in the future so let me detail how it works. When the stock reacted well to earnings on Thursday I looked for a dip entry assuming it would head up in the short term. The high Thursday was $.53 so I bought shares at $.47 on the pullback. Friday morning it opened above $.50 as expected and I sold for an easy $.03 profit per share.
Really didn’t want to sell GPL Friday for a loss, but couldn’t risk holding a silver stock over the weekend when a lot of people are going short on silver. Still came out ahead on GPL with the two trades I made on it this past week. What really scared me was a drop below $3.00 so while I hate taking a $1k loss, it allowed me to sleep this weekend.
Holding 2k shares of ANIK after dropping about 2k shares Friday when it started to pull back. I’ll look to sell ANIK if it gets down near my entry of $7.52 or in the $8.00-$8.30 range should it rise.
I have 5k shares of LOCM at $3.75 and so long as it holds $3.50 I’ll stick around. Obviously what I’d like to see here is a gradual increase in price action which would then threaten shorts into a hopeful squeeze play. I’ve made big money timing this stock right twice now and each day it holds $3.50 I feel we’re getting closer to another run.
Still holding the 25k shares of GSTPE I accumulated at $.21 and I sat on the bid for more shares at $.15. Goal is to sell into any spike in the $.25 range for a nice profit.