Shorting a jumping cat?

Discussion in 'Trading' started by Brandonf, Dec 23, 2003.

  1. Brandonf

    Brandonf ET Sponsor

    [11:33] <brandon> I will never understand this
    [11:33] <brandon> all morning I saw people in other rooms trying to short this thing
    [11:34] <brandon> its the strongest dad gummed stock on the board
    [11:34] <brandon> if you want to go broke
    [11:34] <brandon> short the damn thing
    [11:34] <brandon> if you want to keep your money, either leave it alone or go long
    [11:34] <brandon> when something starts moving like this
    [11:34] <brandon> its like a big aircraft carrier
    [11:34] <brandon> and if your in a little boat in its path
    [11:34] <brandon> its gonna run your lil butt over
    [11:35] <brandon> For the Gap and Go setup we know that the bigger the gap the better
    [11:35] <brandon> the reason is that the bigger gaps are very emotional
    [11:35] <brandon> and we prey on people getting emotional and silly
    [11:35] <brandon> thats how we get paid
    [11:35] <brandon> we are like the doctors who just hand out pills
    [11:35] <brandon> we offer short term solutions to pain
    [11:35] <brandon> a bunch of traders hurting
    [11:36] <brandon> thats where we want to be
    [11:36] <brandon> because there will be profit
    [11:36] <brandon> so here in RIMM big gap up
    [11:36] <brandon> the chart over to the right is the one minute chart
    [11:36] <brandon> and you can see first thing that it formed that pivot high
    [11:36] <brandon> in a stock like this
    [11:36] <brandon> the very first pivot high of the day is a trade
    [11:36] <brandon> so when it took that out we had our first alert in the stock
    [11:37] <brandon> the second one came a little bit later
    [11:37] <brandon> onto the five minute chart on the left
    [11:37] <brandon> something to always keep in mind
    [11:37] <brandon> 1) Aircraft carriers dont turn on a dime and a stock is not likely to either
    [11:37] <brandon> and 2) Nothing just go Up up up up up without taking a breather
    [11:37] <brandon> think of it like this
    [11:37] <brandon> if you are handing out water at a marathon
    [11:38] <brandon> and you got some guy sprinting by you
    [11:38] <brandon> not pacing himself at all
    [11:38] <brandon> you know he is not gonna be the one to win the race
    [11:38] <brandon> stocks need to pace themselves too in order to keep moving up
    [11:38] <brandon> they need to rest up a bit
    [11:38] <brandon> and they do that with bases and pullbacks
    [11:38] <brandon> and you can see the circles here that we had two very nice basing opportunities on RIMM
    [11:40] <brandon> all told we have had some awesome setups in RIMM
    [11:40] <brandon> could be the stock of the month for sure
    [11:40] <brandon> a couple people have total gains of in the $7.50 area on the day in this stock
    [11:40] <brandon> which is just awesome
    [11:40] <brandon> also
    [11:40] <brandon> if you look at the five minute chart right now
    [11:40] <brandon> its resting again
    [11:40] <brandon> now its gonna get more and more risky

    [11:40] <brandon> coz eventually everyone is gonna be trying to catch that train
    [11:41] <brandon> wanting to be long etc
    [11:41] <brandon> wishing they had been since the open
    [11:41] <brandon> and as more and more second chances present themselves
    [11:41] <brandon> the people who missed that last one become more and more desperate
    [11:41] <brandon> and want to get in
    [11:41] <brandon> and they are not the top traders
    [11:41] <brandon> so just know your risk is getting higher
    [11:41] <brandon> at this point
    [11:41] <brandon> Im still willing to trade this next bullflag that is forming out

    [11:41] <brandon> but given that its noon
    [11:42] <brandon> and its so far established on the day
    [11:42] <brandon> Its gonna be smaller size
    [11:42] <brandon> about 1/3
     
  2. Magna

    Magna Administrator

    Thanks for the commentary and charts Brandon, quite an amazing move!
     
  3. Brandonf

    Brandonf ET Sponsor

    Brings back some nostolgic times huh :)