Friday, May 1, 2009

Trading Guidelines

I got a message heckling me saying something like "ha ha sqnm got destoyed, and you called it long" heheh that's funny, b/c I entered on April 24th at the same price I charted it up here, on the same day, it went up, i moved my stops to entry...and was stopped out the next week at that same entry. (flat). Today i'm up 13%, (just sold half at close)

Yes, sqnm got destroyed this week, I called it long LAST week.
(that's why they are ideas of the "week")

I knew they had earnings coming up this week, so i "thought" it would get short covering going into it.

That however brings attention to the rules. (well one of my rules)

#1 Rule, NEVER EVER hold anything over earnings, let the earnings "gamblers" and "over-reaction" tip it's hand. They typically OVER-react, and the play to me is to front run momentum before hand, and/or fade excessive reaction after the fact.

This past week, i called JRCC, MA and FSLR all LONG into earnings (3/3 winners)
- yes FSLR and JRCC both took off even more after earnings, however MA did not.

So gaming earnings is just that "gaming it". All 3 however ran up INTO earnings, that was the
trade proposed.

I also called (BCSI, MS, BAC, AAPL short all week) (2/4)
and (AEM and FSLR short after earnings) (1/2)

6/9 overall.

I like to post ideas on THURS evening, so if a gap up or down presents, or just to have the option to enter on friday, preparing for the next week. As the monday opening gaps have been huge of late.

IE: (for next week)
LCC and the airlines are rocking the house today
SPG and the REITS are getting rocked today.
(so much so, I will be taking 50% profits of each at the close today)


  1. Ag is rocking too. More than gold.

  2. Hey Erik,

    If you are referring to my comment, I was actually asking for your opinion on their product, not stock price wise... Apparently, 3 of their researchers were fired because of data "mishandling" or something. I wonder if they will reproduce their great Down Syndrome Test results at the end of this Trial Phase, and that those fired people didn't really mean much?


  3. anar,

    nah man, not you. Your good dude.

    It was just a "hahhaha good call on sqnm long"
    last i checked that was LAST week's call...

    But it was just a great example that brought up the the importance to NOT "game" earnings reports.

    and to play the pre-momentum and fade the post momentum (if excessive), that's the whole trend (well to me) for AROUND the earnings.

    Yea, i read that....

    I have been following sqnm for about a year, they are now trading well UNDER the price of what they were before they ever even had the down's syndrome testing even in the pipeline at all. I like it here, but yes it's risky, everything is.

    I bought a few June 5 calls on it right at the open today.

  4. Never mind of what others say, I think that you are totally cool and fantastic. Have a great weekend.