Sunday, October 13, 2013

A detailed look of my possible short on $VISN tomorrow.

   I decided to spend some time to lay down a plan for a possible short tomorrow in VISN since a stock is pretty hard to trade.
   It is very volatile, thin and buyers are very aggressive. These reasons are making it hard to make a precise entry. In cases like this a solid gameplan is a must!
Otherwise you'll get smashed and stoploss is guaranteed.

I call a stock is Green when a daily candle of a stock is green (last price is higher then the Open) and call it Red when a daily candle is Red ( last price is below Open).

The reason I mention that is because a lot of people name a color of a stock by comparing last price with a previous day close.

General idea of shorting pumps and when you have an edge.

The lower the Open compared to previous day close (gap down), the bigger the chance of a stock to go Green and stay green on a day.
The bigger the gap up - the bigger the chance of a stock to turn Red and stay red on a day.
These setups are for situations when a stock already reached a definition of a pump.

I call pump everything that went up 50-100% and more in 1-3 days. It can have news, PR, earnings, insider buying, FDA and so on. It is still a pump for me. The only difference is that I would approach a short with more or less aggression, may or may not keep it overnight.

...back to VISN.

Stock went 200+% on fuck knows what.
Last earnings were in the beginning of September and were not great.  Near $7.50 the management of a company refused to comment on an unusual activity in a stock price (rather typical symptom of an end of the move).

So my thought process is this:
I see a stock going lower in near future but I want to have an edge...
So,

  1. I already know that I want a stock to gap up before I would start thinking of a short.
  2. if it gaps up but still under $7 I would want it to go $7+ and short a parabolic near 7.50 or a fake of 7. Then add on going Red (GreenToRed) and possible EOD support crack. Stop HOD/$7.
  3. if a stock opens above $7, I would 
  • look to short "7 wash/going Red" right from the Open and look to swing it with a stop at Open (going Green) . Swing target $5-.
  • or if still strong - short on parabolic towards 8 with Open as a first target, stop HOD/$8.
    Then add on GtR. If acts right and stays Red, keep it swing with $4-5 as a target.
Hope you will benefit from this article when shorting VISN and other pumps to come.
Stay alert and calm. 
Always have a plan!




Wednesday, September 18, 2013

Friday, September 13, 2013

Gameplan for Monday

Kept $ACFN overnight from $6.12 entry. Pretty sure we'll see $7 soon. 21% short float, should be a massive squeezer. Strong close
 long on RtG, thin so be precise with your entry
  long on RtG
  long on RtG, would like it to show holding .50 first
 long on RtG, volume coming in