"ELY Mutual"... 
too much!
too much!
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Great New Pattern
- Thread starter rtharp
- Start date
Mea culpa Ely. I think this is bottom here around .2. I took 15k more at .3. If not, im blowing it all out for a monster loss.
Yea... Ely Callaway resigned or retired and their profits were cut. But it ain't the end of the world. It should be a source of trading profits.
Something worth mentioning is shorting cheap biotechs. Rtharp mentioned earlier taking on short positions on stocks that are topping out of a vertical climb... climax tops I think they are called. Anyway.... I was reading about a trader scanning for good news in cheap Biotech stocks and then fading the surge on the second or third day. He said the good news rarely sustains a climb in a cheap stock. Think about VPHM... a "cure" for the common cold. They have sold us that "news" several times and the stock charges up and the crashes each time. I have watched ASTM and STEM climax this week and thought about how that strategy fits in with the GNP. Do stocks have to be over 5 bucks to be shortable?
El Cazador yes they do unless you have professional status like me (I've got so many edges by being a member with Echotrade)
To short a stock requires margin and the stock to be marginable. Regulation -T and the SEC feel stocks under $5.00 aren't marginable. But professionals aren't held under Regulation -T
Today was interesting.
Shorted LH again as it opened below yesterday's close it failed and I lost a point.
I'll figure the top soon though on this guy and will keep trying as long as it is below the close (I'm going to make 70% return on my account when I'm right on this one trade)
see this link on my website for more info.
http://communities.msn.com/Rtharpsland/shorting.msnw?action=get_message&mview=&ID_Message=647
I was also short KKD but that wasn't a regular part of my system opps on my part it also failed. It is overbought but probably has awhile to go.
I got long today NVR at 152.9 and put a stop on my server so I wouldn't have to worry about it. It executes by the bid and offer. Someone canceled his bid and the bid dropped 2 points (but no trades had printed for this). I saw my stop become a market order and tried to cancel it but of course got filled. It ended up going over 8 points today. I would have sold a huge portion of trade up 6 because it was rising too fast and to protect profits. A small piece I'd let run which would have been dumped when it dropped 2 points so I would have had a 7R today on this trade. Happy I had a great setup/ but pissed at specialist filling me even though I wanted him to cancel.
Rtharp
To short a stock requires margin and the stock to be marginable. Regulation -T and the SEC feel stocks under $5.00 aren't marginable. But professionals aren't held under Regulation -T
Today was interesting.
Shorted LH again as it opened below yesterday's close it failed and I lost a point.
I'll figure the top soon though on this guy and will keep trying as long as it is below the close (I'm going to make 70% return on my account when I'm right on this one trade)
see this link on my website for more info.
http://communities.msn.com/Rtharpsland/shorting.msnw?action=get_message&mview=&ID_Message=647
I was also short KKD but that wasn't a regular part of my system opps on my part it also failed. It is overbought but probably has awhile to go.
I got long today NVR at 152.9 and put a stop on my server so I wouldn't have to worry about it. It executes by the bid and offer. Someone canceled his bid and the bid dropped 2 points (but no trades had printed for this). I saw my stop become a market order and tried to cancel it but of course got filled. It ended up going over 8 points today. I would have sold a huge portion of trade up 6 because it was rising too fast and to protect profits. A small piece I'd let run which would have been dumped when it dropped 2 points so I would have had a 7R today on this trade. Happy I had a great setup/ but pissed at specialist filling me even though I wanted him to cancel.
Rtharp
For the record im still long 19k of ely. Gonna be a tense weekend.
Dude! In at .2? You smoked this one! Was that climb in the last hour just short covering?
Holding over the weekend... you got nerve! Good luck!
Holding over the weekend... you got nerve! Good luck!
Praetorian2,
First of all... Good Luck on your ELY position. I must say however, that your position reminds me of the phrase, "Bulls make money, Bears make money, Pigs get slaughtered!"
Are you trying to make a killing in one trade and retire, or are you just riding off a high from a series of wins?
What happens if ELY gaps down 1-5 points on Monday? I don't know what size account you're trading, but that would put a serious dimple in any size account.
I can understand the urge to try and catch a falling knife, but with 19,000 shares???
Why take such a huge risk on one trade?
************************************************************
Rtharp,
You said in a previous post:
"Shorted LH again as it opened below yesterday's close it failed and I lost a point.
I'll figure the top soon though on this guy and will keep trying as long as it is below the close (I'm going to make 70% return on my account when I'm right on this one trade)."
Just curious, how do you expect to get a 70% return on your account on one trade? Are you trading your entire account on this one stock at each attempt to catch the top? Wouldn't that mean the stock would have to drop 70% in value for you to attain your desired return?
Sounds like you're trying to get revenge on the stock for taking your money on a few other trades. Isn't that a bad idea in general?
************************************************************
Both of you are obviously very experienced traders and I'm just trying to get an insight into your thinking.
First of all... Good Luck on your ELY position. I must say however, that your position reminds me of the phrase, "Bulls make money, Bears make money, Pigs get slaughtered!"
Are you trying to make a killing in one trade and retire, or are you just riding off a high from a series of wins?
What happens if ELY gaps down 1-5 points on Monday? I don't know what size account you're trading, but that would put a serious dimple in any size account.
I can understand the urge to try and catch a falling knife, but with 19,000 shares???
Why take such a huge risk on one trade?
************************************************************
Rtharp,
You said in a previous post:
"Shorted LH again as it opened below yesterday's close it failed and I lost a point.
I'll figure the top soon though on this guy and will keep trying as long as it is below the close (I'm going to make 70% return on my account when I'm right on this one trade)."
Just curious, how do you expect to get a 70% return on your account on one trade? Are you trading your entire account on this one stock at each attempt to catch the top? Wouldn't that mean the stock would have to drop 70% in value for you to attain your desired return?
Sounds like you're trying to get revenge on the stock for taking your money on a few other trades. Isn't that a bad idea in general?
************************************************************
Both of you are obviously very experienced traders and I'm just trying to get an insight into your thinking.