$596 Profit In 30 Minutes Shorting Penny Stock SCON
Take a look at the chart and memorize this classic chart pattern that almost always makes you $$$$ shorting penny stocks.
As I pointed out early this morning before the market opened in my penny stocks to watch, SCON was up 150%+ on an obvious hyped/manipulated run because there were no PR’s hitting the wires whatsoever on this penny stock. Look at this chart and tell me this is not a screaming short. Penny stocks just can’t keep going up and up and this one was no different. It went up tooo much tooo fast so the game plan for the morning, yes game plan (you should all have one as I pointed out in THIS post) was to watch for any weakness and short the weakness. At the market open we got a slight gap-up in this penny stock but the postive run up only lasted 5 minutes..after that it was weakness as sellers came into the stock at full speed. About 9:50am SCON went negative on the day – this was the weakness I was looking for. Now, I didn’t get a good entry price as it was dropping so quick and the bid/ask was going crazy but I wound up getting my 1290 shares short @ 2.71. From there it was a classic death spiral of a hyped penny stock on green-to-red price action. Think about it: If I was a stock promoter/pumper and I had a huge long positon in a stock that has gone up 2 consecutive days over 150% and on the 3rd day it opens up and things are looking great then all the sudden it goes negative/red on the day (something it hasn’t done in days) panic sets in and everyone sells which is why green-to-red works so well when shorting penny stocks. I explain this pattern further and how to short these penny stocks in my FREE eBook that if you haven’t already gotten, you should!
A List Of The Top Penny Stock Promoters
Penny stock promoters do exactly that: promote penny stocks. These promoters claim there will be 100%-1000% Gains! They send out daily emails after email explaining why symbol XXX is gonna go up 1000%. They’ll even send of faxes, make phone calls, etc.
Don’t fall for any of these stock promoters gimmicks as many of them are outright scams. The penny stocks that these sites promote and hype are your common Pumps & Dumps. If you’ve read my FREE eBook you know that I make my money shorting hype and manipulation in penny stocks that are caused by pumps and dumps. So while you shouldn’t trade a penny stock right off the bat that is mentioned by these promoter’s emails, etc there is money to be made after the pump and hype fizzles off.
I’m providing these links to make you aware if a certain penny stock you’re watching/trading is in fact a pump and dump.
Here is a list of the top penny stock promoters doing their “thing” right now…
If you know of other promoters promoting the hell out of penny stocks right now…right them in the comments section and I’ll put them in.
How I Shorted Penny Stock EVK For A Profit
With the markets tanking early this morning it was everyone’s mindset to be short-biased for the day. The problem with big gap downs in the overall market is that a lot of the penny stocks that I’m looking to short gap down tremendously when the market opens. I have a problem with shorting penny stocks with huge gap downs in the morning because they’re already down so much there’s not much more profit to be made on the downside. PLUS it’s a riskier trade, and you’re vulnerable to getting juiced by the short squeeze from the early morning penny stock’s tankage.
One of the penny stocks from my 11 Hot Penny Stocks To Watch (posted early this morning before the market opened), EVK, broke down early morning and busted through the key level support @ 2.20 and tanked further. Too bad I was preoccupied and didn’t catch the break of the price support. Though only 10 minutes later the shorts got squeezed and the price bounced right back up to the support line. I watched this squeeze and determined that I would short NOW as I realized the penny stock was struggling to go up passed the 2.20 level(which now was resistance).
Unluckily as soon as I put in a market order the stock began to slip down as my order was accepted. I wanted to short at 2.19 but my 1,160 shares were filled at a 2.06 average. Some time went by and the price drop I expected never really came around. In the early afternoon it slipped down to 1.97, this is when I decided to close out and collect my small $108 dollar profit. I chose to close out mostly because for nearly 2 hours prior to this it traded ONLY 100 shares! YES – an illiquid stock! This is probably the most illiquid penny stock I’ve ever traded and it scared the hell out of me.
My instinct was correct and shortly there in the late afternoon EVK climbed up to 2.33! I got pretty lucky when I decided to close out my position as only 2,260 shares were traded at the 1.97 price range, 1,160 of those were mine.
Here’s the chart with some blurbs:
Will This Be The Best Stock Chart Of 2009?
With the markets getting pummeled in this recession atmosphere will this be the best stock chart of the year?
I’m gonna go out on a limb and say that GOE I think that it certainly will be.
This stock is actually an ETN, which is I’m not really sure, but there was only 50,000 shares allowed to be traded per day. Can you say illiquid?? It was following the trend of gold at the time but I don’t think any stock has the right to go from 10 to 120 in a few days without some crazy “we saved the world” news.
Keep in mind this is on March 9th. Now look what it is at! This, my friends, is a chart of a short sellers dream. It is an example of the perfect pattern that is such a predictable short sell.
