Satuki @ Home

Market has moved up so much.  The only question I asked myself this morning was how far it would continue like that.   Without seeing too much possibility of a further rally, I decided to short something again.  Well I think that was just an excuse for my bias toward shorting.  Right now there is too much bubble in the market.  I always try my best to contribute my part to reducing the size of the bubble. As a result, the market rewarded me for my selfless and endless contribution to the overall health of the market.

So what stocks should I short?   I kept asking myself this morning.   While I was looking for a target, PCX jumped out. It basically screamed at me.    “Me Me Me, pick me” screamed she.  I then asked her why?  She gave me 2 reasons

1. I went up over 150% in the last week.  It is just crazy that people pushed me up so high in such a short period of time.
2. I am no different than my brothers and sisters like MEE, WLT and others.  Why am I the only one up when they are down so much?

I pondered over it and thought what she said indeed made sense.  Then I asked her what I should pay attention to when I take a short position in it since I normally do not trade low priced stocks like that. She said

1. Keep your position size small due to the wide spread
2. Hold onto it when it moves

That is exactly what I did.   Because I kept my position size small, I could afford a wide stop loss.   Because I kept my position small, I held onto it for an 8% winner.  My position size was ridiculously small (less than 5000 dollars).  But it worked out perfectly just because of that.

There was another very good short target AMSC this morning, which I talked about it a few times on Twitter. See the picture below.  AMSC could have made a killer short too.  But it was not shortable with TradeStation. 

After that trade in the morning, I decided to call it a day, have a nap and watch 2 DVDs in a row in the afternoon.   Would you give up this kind of life style for anything else?