As I detailed in THIS post my reasoning for shorting APII, the odds caught up with them–them being an incompetent poorly run company, as evidenced by too many “earnings statements” & that nasty long-term stock chart–as they reported their latest shitty/bankruptcy-esque earnings.
Stock up 700% in 1 month + shitty earnings = inevitable bigtime tank
I knew entering my short ahead of earnings was risky, as I wrote in this TIMalert sent to subscribers when the stock was at $3.30:
yes the volume has faded, yes its finally red on the day, yes, it just took out the day low, but this is dangerous with earnings coming out tomorrow. i prefer to live dangerously. but that’s just me. no idea how long i’ll hold, could be 1 hour, 1 day, 1 week, i am aiming for a crack ofyesterday’s lows as that would make me feel very comfortable holding overnight, but we’ll see…the key is to judge these plays by price action, enter when you’re comfortable, exit when you’re not, always try to minimize losses.
…but that risk paid off
…which is the definition of a good trade: understanding one’s risk…Personally, I didn’t think it would collapse so quickly–most don’t, but my last 2 TIMalert shorts on USS and MKTY (see how they fared HERE) prove the current market environment loves punishing these turds–so when I covered into the morning panic at $2.66 for a $1,200 gain (5 minutes later stock was at $2.20ish…right now it’s sitting at $1.80…blehhhhh $1,500 profits left on the table) but I just wanted to get over $25k) pushing my tiny TIM account over the key–at least according to Osama bin SEC (see explanation HERE)–$25,000 threshold to $25,716, up 9% on the month, 107% since I started this quest back in November 2007. Which I do have to mention crushes ANY return of ANY newsletter writer/gruru/expert–percent-wise–especially considering all my trades are verified by Covestor, all trades are detailed HERE and I’ve made plenty of mistakes along the way aka haters got nothinnnnnnn!
PS Haters, learn to attack you’re opponent when he’s down, not when he’s just made his single greatest call to-date and has these ridiculously amazing TIMalert testimonials (see all the rest from previous alerts HERE) below to back him up and drown out the small losses–think average loss of $100–when he was too early with his short the first time around: … [visit site to read more]
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