Sure, it’s amazing that Tony Ellis turned $80k into $130k in 6 months, it’s amazing that his two worst trades weren’t even losses (he simply failed to take profits properly aka a good problem to have), it’s even more amazing that now he’s now given me PDF file that says his gains have now surpassed $85,000 (friggin’ awesome!), but what’s most amazing is his trading education and success is directly due to my instructional DVD PennyStocking Package (which comes with a 220-page instruction manual and an autographed copy of my book An American Hedge Fund). This ain’t no ad, it ain’t no scam, it’s proof positive my trading theories work.
This latest post is all Tony Ellis, who had the balls to buy a Supernova breakout (a chart pattern detailed at length on the DVD), even though it seems crazy and even I missed it (I was at a FOX interview…tough life!). And Tony wasn’t the only one….BJPN, himself another PennyStocking DVD student, also profited nicely, basically paying for the DVD in one trade—and judging by his $ profit, his account isn’t more than a few grand:
Bought pdo yesterday afterhours @37.5, sold half this morning @41.15 and the other half @41.89, at exactly 9:30:00 according to my trade log! Must have been a ton of buyers because I set to sell them all at limit price=41.05! $258 profit. I showed everyone at work my trade confirmation on my phone!
OK, enough promo/pride from me (c’mon, if your $300 DVD package was now responsible for hundreds of thousands of dollars in gains for others (remember Mike the machinist…I’m claiming responsibility for half his $300,000 gains!), wouldn’t you be a little proud too?), take it away Tony:
Classic Supernova Breakout
Monday I posted “Anyone else crazy enough to buy PDO @ $35?” (TIMcomment: nope, Mike and BJPN did too, see HERE and HERE) I must be crazy to buy a stock up over 750% in a few weeks was my initial thought. Before watching Tim’s DVD and learning the dynamics of a supernova I could have never conceived buying a stock so overextended. But knowing what I do now I understood that this was in fact a perfect opportunity. Low float, hard to borrow shares and making a ridiculous new high…count me in! Better phrased by superman, “PDO short massacre”. I bought 1000 shares @ $35 Monday and sold near the open Tuesday @ 41.50, 19% profit.
Why are Supernova breakouts so highly profitable? It’s very simple if you think about it, there are no sellers only buyers. Three factors contribute to this condition. Supernovas are grossly overvalued so they attract short sellers and these early short sellers become buyers when they make new highs. The shares are hard to borrow so new short sellers can’t put downward pressure on the stock. (TIMcomment: I agree 100%)
Finally, the trading volume in these stocks comes from traders and 90% of traders lose money. Since traders are losing money then they obviously aren’t selling when a stock is making new highs and many of them are buying. (TIMcomment: interesting way to look at it) These combine to create the perfect storm for short squeezes.
This is my take on the supernova pattern and the inverse is true when they break support. Tim’s DVD really explains everything much better. (TIMcomment: why thank you kind sir)
It really is true, scalps for 20, 30, 50 cents/share are fine…but they’re not gonna make you rich and they’ll probly make you go bald. Focus exclusively on Supernova patterns, which are much more rare but on which you can earn $1,3, $5/share (and you don’t have to be anywhere near perfect, as all these guys missed PDO’s top by more than $4/share!), and you’ll live a healthier, wealthier life!
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