Tuesday, July 31, 2012
Monday, July 30, 2012
Friday, July 27, 2012
Short Squezze ?
Props to Molecool of http://evilspeculator.com and Fearless
http://evilspeculator.com/?p=29987
Bollinger band method is based on three fundamental principles:
I Bergamot:
http://evilspeculator.com/?p=29987
http://evilspeculator.com/?p=29696Trading a Short Squeeze:
How to scan/enter a long in anticipation of a short squeeze:
- Look for stocks that have high short interest, or a days to cover ratio greater than 10 for not well established companies. The number is 5 or greater for established (financially proven) companies.
- Look for stocks whose short interests build up while prices stagnate and lurks just under resistance.
- Look for earnings release dates and match that to the short interest as earnings will be used as an excuse to squeeze.
- The instrument is trading above the 20 day SMA on a slightly above average volume prior to the event.
- If the instrument trades below the 20 day SMA prior to the event, but the volume is slightly higher than the average daily volume, you want to see the price trending higher into the event and above the daily acceleration line.
Bollinger band method is based on three fundamental principles:
- Once an instrument reaches the Bollinger band, it has the potential to push the band limit given the right trending conditions;
- Once an instrument starts pushing the band, the trend may be strong enough to cause a profitable squeeze quickly or a sizeable gain over time; and
- Should the instrument’s price becomes embedded in the Bollinger band, stop looking for reversals and let the market forces slaughter players on the other side of your trade for you.
I Bergamot:
I posted this question for Fearless in a previous thread. Trying to get an concept of short squeeze thru my thick skull, spent two nights on scanning for stocks that fit Fearless criteria, but still... you know ...not sure.
Maybe Mole or Skynard or somebody can help to check my reasoning. Any comments are welcome. Thanks
"Still trying to work out picture and user name. But I have an urgent question re "squeeze candidates".
HOTT
8.7 short ratio, within spitting distance from 52week and 3year high, right
between 20 and 50 ma. Earnings on Aug 15. PF target 14 (almost 50% up from here).
Than I look at VALE and don't see anything of a kind.
Respect your opinion alot and would appreciate a reply. Thanks"
Fearless:
Great Story
http://www.thereformedbroker.com/2012/07/25/nine-financiers/
the president of America’s largest steel company,
the president of America’s largest utility company,
the president of America’s largest gas company,
the president of the New York Stock Exchange,
the president of the Bank of International Settlements,
the nation’s greatest wheat speculator,
the nation’s greatest bear and speculator on Wall Street,
the head of the world’s greatest monopoly
a member of President Harding’s cabinet.
It was said to have been both a celebration of their success as well as an opportunity to plan their future exploits and dominance. These were the captains of their respective industries and some of the most successful businessmen of the era.
But how did things turn out for these distinguished gentlemen? Within 25 years, all of these great men had met a horrific end to their careers or their lives:
The president of the largest steel company,Charles Schwab, died a bankrupt man; the president of the largest utility company, Samuel Insull, died penniless; the president of the largest gas company, Howard Hobson, suffered a mental breakdown, ending up in an insane asylum; the president of the New York Stock Exchange, Richard Whitney, had just been released from prison; the bank president, Leon Fraser, had taken his own life; the wheat speculator, Arthur Cutten, died penniless; the head of the world’s greatest monopoly, Ivar Krueger the "match king", also had taken his life; and the member of President Harding’s cabinet, Albert Fall, had just been given a pardon from prison so that he could die at home.
And as for the Wall Street Bear, Jesse Lauriston Livermore, famous speculator in the stock and commodities markets, his end is perhaps the most tragic of all. A week after Thanksgiving in 1940, Jesse walked into the Sherry-Netherland Hotel in New York, had two drinks at the bar while scribbling something in his notebook, then proceeded to the cloak room where he sat on a stool and shot himself in the head. He was 62 and left behind $5 million, down from the $100 million fortune he had amassed just ten years earlier.
And the note he had scribbled?
“My dear Nina: Can’t help it. Things have been bad with me. I am tired of fighting. Can’t carry on any longer. This is the only way out. I am unworthy of your love. I am a failure. I am truly sorry, but this is the only way out for me. Love Laurie”
There are three major lessons we can take from this parable:
1. Those who are on top now are not certain to finish in that position and are not guaranteed everlasting success or happiness.
2. Be careful whom you choose to idolize.
3. The life of a professional speculator is an unpleasant one, filled with highs and lows but ultimately unsatisfying and, in all probability, mentally ruinous. Look no further than the example of history's greatest speculator for proof of this.
Nine Financiers
- Joshua M Brown
- July 25th, 2012
the president of America’s largest steel company,
the president of America’s largest utility company,
the president of America’s largest gas company,
the president of the New York Stock Exchange,
the president of the Bank of International Settlements,
the nation’s greatest wheat speculator,
the nation’s greatest bear and speculator on Wall Street,
the head of the world’s greatest monopoly
a member of President Harding’s cabinet.
It was said to have been both a celebration of their success as well as an opportunity to plan their future exploits and dominance. These were the captains of their respective industries and some of the most successful businessmen of the era.
But how did things turn out for these distinguished gentlemen? Within 25 years, all of these great men had met a horrific end to their careers or their lives:
The president of the largest steel company,Charles Schwab, died a bankrupt man; the president of the largest utility company, Samuel Insull, died penniless; the president of the largest gas company, Howard Hobson, suffered a mental breakdown, ending up in an insane asylum; the president of the New York Stock Exchange, Richard Whitney, had just been released from prison; the bank president, Leon Fraser, had taken his own life; the wheat speculator, Arthur Cutten, died penniless; the head of the world’s greatest monopoly, Ivar Krueger the "match king", also had taken his life; and the member of President Harding’s cabinet, Albert Fall, had just been given a pardon from prison so that he could die at home.
And as for the Wall Street Bear, Jesse Lauriston Livermore, famous speculator in the stock and commodities markets, his end is perhaps the most tragic of all. A week after Thanksgiving in 1940, Jesse walked into the Sherry-Netherland Hotel in New York, had two drinks at the bar while scribbling something in his notebook, then proceeded to the cloak room where he sat on a stool and shot himself in the head. He was 62 and left behind $5 million, down from the $100 million fortune he had amassed just ten years earlier.
And the note he had scribbled?
“My dear Nina: Can’t help it. Things have been bad with me. I am tired of fighting. Can’t carry on any longer. This is the only way out. I am unworthy of your love. I am a failure. I am truly sorry, but this is the only way out for me. Love Laurie”
There are three major lessons we can take from this parable:
1. Those who are on top now are not certain to finish in that position and are not guaranteed everlasting success or happiness.
2. Be careful whom you choose to idolize.
3. The life of a professional speculator is an unpleasant one, filled with highs and lows but ultimately unsatisfying and, in all probability, mentally ruinous. Look no further than the example of history's greatest speculator for proof of this.
Thursday, July 26, 2012
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