This is simply a technical trade. After my Tuesday afternoon rant ("they know nothing!") I made a series of buys which I was hoping to flip out in 3-4 days. Because that is just about the only way to make money in these stocks nowadays. Unfortunately the change in direction in this market has been even shorter than that - huge up day Tuesday, huge down day Thursday, huge up day Friday, etc. The commodities rallied a whole whopping 1 day. So I was not agile enough to flip out of the coal and fertilizer names which I bought near the nadir in the last hour Tuesday since they could not even put in 2 full days of rallying. Quite sad.
However A-Power Energy Generation (APWR) I was able to buy in the mid $19s and it is now $22 so I am simply going to take back the 400 shares I bought Tuesday. This takes us down from a 3.8% exposure to 2.8% exposure. I really like this name but that means nothing until it trades back above resistance. Fundamentals are for old guys - this is the new era baby. Looking at the chart we want to see this north of $24 - or add more near $18.
It is quite sad what is being done to this stock - if only the SEC would protect these small caps from naked shorting like it is doing for the heavenly financials. But then how would hedge funds make money? If you don't believe me look at the 1 day chart of action Tuesday. Slammed all day down from $22 to $19 (where did all that volume come from out of the blue Tuesday) and then within minutes after 3 PM? Magic! Notice the massive post 3 pm volume spike and huge short covering move upward.
(click to enlarge)
Ah the games they play... again we are just gnats on the behind of the big money. And the parlor tricks they do, the SEC could care less about - unless the guns are trained at the financials. Then you actually enforce the rules that are on the books - otherwise you don't bother. The longer you do this, the more you see this stuff (as seen above in the chart) ALL OVER the place. This market is not for capital raising for young companies - nope; it's just a way to churn out profits for those with heavy amounts of capital whose timeline is banking as much coin in every 90 day period. By whatever means necessary - regulators can't be bothered by this or investigating why huge amounts of puts are bought hours ahead of earnings misses or huge amounts of calls are bought hours ahead of an announced acquisition. Nope. Got better things to do - like put Martha Stewart in jail for making $60K on her Imclone. Yep, go after the "big fish" instead of the guys making billions off this stuff.
Anyhow - it's their game - we're just the sideshow and trying to get by. And no I'm not bitter -I literally type this with a very wry smile on my face - I just have to chuckle to self every time I hear about the efficient market or "even playing field". hah - good one!
Long A-Power Energy Generation in fund and personal account
Did you like this article?
's
