I love trading, even when I’m on vacation. So when I saw JAMN jump almost 100% Tuesday on a fluff PR I knew it was time to go short. Problem was, I didn’t have a lot of time to watch my trade, so I just grabbed the spike at $1.07 into Tuesday’s close and let it ride baby!
(By the way, vacation ends this week so I’ll be back to my regular alerts soon, stay tuned)
It’s always a risk holding a short overnight on manipulated stocks like JAMN, but to be honest I just knew there was no way it would gap and run come Wednesday morning and boy was I right.
With 25,000 shares short at $1.07 I was down about $4,000 at one point but I stood my ground knowing Wednesday’s open would collapse and collapse it did.
Despite all the pumpers on Yahoo Finance pushing as much as they could, all the pigs got slaughtered on this one. In what can only be described as a massive free fall, shorts who had the courage to go against the herd Tuesday into the close watched ARCA send a clear message Wednesday premarket lowering the bid/ask repeatedly until the open when retail traders choked on their coffee and ran for the door.
My confidence on this one was high for a few reason, despite being down initially as shares spiked into the close. First, each of the recent spikes were met with a sell off the very next day, hence no continuation. Second, all the gullible traders sucker punched on JAMN the first time around weren’t going to let it happen again. Third, it was up 100% on massive buying pressure… I knew all those buyers at the close would jump ship right away as soon as it dipped below their entry.
Now I cashed in on the first bounce covering at $1.02 per share for an $.05 per share profit and couldn’t be more happy with the $1,250 overnight. Yes I’m a bit mad I’ve left about $5,000 on the table with shares currently at $.87 but I’m more excited about nailing the trade.
Bottom line is this, too many people jumped into JAMN Tuesday and that caused the boat to tip. Once the first person jumped in the water everyone else just followed and rightly so – if the JAMN chart tells us anything it’s that sticking around in this soon to be SEC halt will only make you a bag holder.