iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,467 Blog Posts

The Truth About Melt Ups

No one really talks about the anatomy of a melt up because we all want to be viewed as smart, clever managers who deserve to get paid obscene amounts of money. The truth is, melt ups are fairly straight forward to play and the dumber you are, the greater chance you have to bank some serious coin. Don’t act like that last sentence isn’t true–cause you know it is.

My first Wall Street gig was a sweet one: personal mail opener/slave to up and coming super mutual fund manager, Paul Wick at Seligman. I was in high school and knew very little about stocks, yet managed to beat his ass in a bet–regarding some stock that I said would move an astounding 25% in a week. I got very lucky and won a dollar.

This evening I was running some screens to understand the profile of this rally and it’s exactly what I thought.

Growth and earnings don’t mean a thing.

The vitality of the company is moot. All that matters is market cap, number of shares in the float, trading volume,  and sector.

Based off this information, like any good detective of the markets, I scoured, mind you, the market for small capped stocks with less than 50 million shares in their floats. Also, the stock had to be +2% today and trade at least 250k shares in volume per day.

Lastly, I am only interested in tech, healthcare and services.

Here are the stocks, cherry picked by yours truly, that should snatch chains on the way up within a week.

ALLT

BIOD

DRWI

HTCH

INFI

PERI

RKUS

SCTY*

TSRO

XONE

SNTA

* INDICATES MY BALLS SWING LOW ON THIS NAME, MEANING I HAVE OWNERSHIP.

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17 comments

  1. Half Blood Pope

    Currently long INFI. With PCYC booming I view them as a possible crack fiend, ‘me too’, buyout candidate.

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  2. Brian

    PERI is a dog with fleas.

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  3. Fake fly

    Your ass is banned.

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  4. 200day

    Exactly, “don’t confuse genius with a bull market”

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  5. Martin

    FSLR?

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  6. Yabollox

    I feel really smart when I outperform the averages. But when I underperform the averages the market is just being stupid.

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  7. Martin

    INVN is going to go.

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  8. Trading_Nymph

    You know with all the softball questions and Dove talk we are still holding our 2.50%ish. No more QE in this overbought mess of a thing we call a market. We topped, we are done…only nobody cares.

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  9. flyaway18

    I bought HTCH last week and am already up 15 percent. In May insiders bought in the 5.30 range so this one could have legs longer term, too. I am waiting for PPT signal to buy more. By the way I posted my buy here for anyone interested.

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  10. jackass

    What happened to the devil

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  11. Adam

    what do people think of QCOM in run up to earnings?

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  12. ogma107

    Bought IMMR and AMBA at huge discounts during the sell-off. I am a witness of the great space alien magician.

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  13. Mad Marsupial

    How did you pick 50 million for the float?

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