MXC
-MXC a mere ONE MONTH AGO was a 5 dollar stock that have EXPLODED EXPONENTIALLY all the way to the close today of $42.53. That equates to a near 700% INCREASE
PDO
- PDO in the last month have gone from 5 dollars to the close today of $22.85 = 381% INCREASE
If these are not bubble status stocks I don't know what is. Especially MXC.
Keep in mind these are small cap stocks and could have very unpredictable moves. But I am about ready to jump in on the shorts because when the profit taking comes in full gear, THESE STOCKS ARE GOING TO DEFINE THE MEANING OF A BUBBLE EXPLODING.
Watch these two plays in the days to come.
- DL
9 comments:
DL-
I am curious about your overall methods for trading. On avg how many trades per day or week? Do you have long positions? Do you just take short-term cap gains hit?
I am curious b/c I am slowly starting to build a portfolio on the "side" of my retirement accounts (Roth and 401k plans for me and my wife). I have some long positions in my money market account, but also do trade pretty actively on weekly basis through my Roth b/c then I don't get hit with cap gains. But I can't short trade in Roth account - so I am thinking of taking some cash in my long positions in "side" account and trading that more actively. Thoughts on that? What percent of the account do you think I should trade actively? I should note that I will likely use some of this account for down payment on home late next year (I currently rent in London) so aggressive appreaciation is good in my mind.
General thoughts welcome. Thanks.
Best of luck with you on your USO trade, it seems as though 130 may be a resistance point. Another option for an oil play on the short side may be NOV (national oilwell varco) it's a favorite of Cramer. They're the company that provides rigs for oil companies, when I first caught his recc. it dropped from 63 to the low 50s. Or look into the smaller refiners like Valero (VLO).
Also I'm in a slight delema, my Lehman short is up about 7% so far and can't seem to decide when to cover. Such a large drop in one day makes me uncomfortable, but I believe it may have further to fall. My cost basis was 42.73.
you didn't short MXC at 42 did you...?
it is 52.90 as I write this....
If so, good luck.
crap, spoke too soon on Oil seeing resistance. Scratch that NOV short idea for now, I saw it gapped up and my broker put it as one of their ten highlighted stocks.
anonymous,
I am very flexible in my investment strategy. I have a little bit of everything. I hold core positions for my IRA which I do not touch. And I have stock trading accounts where I can short/swing/daytrade. I think splitting up accounts is definitely to your advantage because you are then able to take advantage of market opportunities when they present themselves. As for how much you should put in to trading - I would say a rule of thumb is put in what you're willing to lose. When I started trading I literally put aside the money I didn't mind losing. And I would aggressively trade momentum stocks to maximize my returns. It turned out very well.
Good luck to you
mr jeanius,
you have been right on the USO and I have been wrong. I own it. But I will just continue to hold on to the short until 110. I only have a small position so losing it will be no biggie for me. But I'm very impressed with the move oil is having. It is just mind blowing.
V,
No I have not shorted those bubble names yet. I CANNOT BELIEVE HOW MUCH IT IS GOING UP AGAIN TODAY. I will only start shorting when the stock begins to roll over. I will not set up the shorts when it is still having up days.
But keep an eye on these names. This is just insane
Mr Jeanius,
Lehman is pinned right below the 20/50DMA so chances are it's not going anywhere. I think you have a winner there. If you read from a 3 month chart the RSI right now is at 37%. I think a good target to cover is when the RSI hits anywhere below 30%.
add one more short for you. FPP, another insane stock.
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