Back to the Drawing Board

We’re not done yet. I have a few million to play with and will be using my time to find new buys this evening. CBMX looks interesting, as well as SLCA. I need to find names that can support decent buying interest, as I hate moving stocks with my buys and sales.

The WFR and the rest of the solar space is in space. I like the ENPH story in solar.

Education stocks, like APOL and ESI, have roared– but I hate them because they always miss earnings.

MU is going to $14. Write it down. And Le Fly is going to get into a monster winner very soon.

All ideas are welcomed and will be investigated.

I pared some of my RBCN position because it was huge and +10%. With some of the proceeds, I will allocate funds to whatever is smoking hot. I had ROSG this morning, before it ran, inside of the 12631 trading room– but couldn’t play it due to illiquidity. Since I’m rarely fully invested, it was a horrible feeling for “The Fly” to endure.

I have several names at the top of my list- but will not share them just yet for fears you leeches will front run me.

The tape isn’t that strong, so there’s always a chance of a wicked reversal. My CZR is under pressure, alongside several of my key holdings.

There’s nothing wrong with letting the bears enter the cabin to feed on the crumbs lying on the living room floor. When they are finished, lounged out by the fireside, we will jump on them from the rafters and stick pikes in their faces and tear off their stupid bear heads.

DEVELOPING…

I’ve crossed the Rubicon (RBCN) and have decided to support CZR down here.

http://www.youtube.com/watch?v=51TB69cDccg

For the uninitiated, stocks that break $100 get instant erections and head right to $104-106. This is not conjecture or mere opinion, but scientific fact.

This will be the easiest 5% made in the history of mankind.

You’re welcome.

Solar stocks continue to gap higher, even though oil is weak. Some of the names taking off include SPWR, WFR, SOL etc. One name that has been running higher, quietly, that provides management software for solar utilities is ENPH. Check it out.

I can’t buy solar here. I’d much rather try to get in ahead of any speculative coal run, via JRCC (I am long) and ANR.

Short squeezes are performing once again. Today I like ONE, SUPN, SLCA, SKUL and DMND.

But the market is fluid, so I will be looking for new ideas all day long and will be updating in real time inside of The PPT and 12631.

Interestingly enough, as of now, I am losing money for the day. This is unacceptable.

What causes stocks to go squeeze higher? I can enlighten you into the sentiment of money managers and how they are scared to death of being caught in an epic run, like NFLX or more recently TSLA. Valuation is unimportant in the immediate term. All that matters is fear and greed.

Are the shorts fearful of the stock going higher and are the longs greedy? If so, that stock might be setting up for a monstrous run.

I’ve been studying correlations all of my life. I like to know why things happen. Sometimes they’re random: but most of the time they’re by design. There are certain traits that are common in all short squeezes, none more than shares in the float. If the stock doesn’t have full institutional interest, like NFLX, CMG or GMCR, there must be a small amount of shares in the float in order to get the stock going–preferably under 20 million.

Of those shares, I like to monitor stocks that have at least 10% of its shares sold short. Due to liquidity concerns, I am looking for stocks that trade at least 100k shares per day. And, one of the most important factors is the “pain threshold.” If the stock hasn’t been moving higher, there is little incentive for the shorts to cover. You want to look for names that are up more than 10% over the past month.

Now we get to the proprietary stuff.

Since hundreds of you are now under a free trial membership of The PPT, you can view the screen I am about to reveal. It finds stocks that have jumped by more than 10% in its “Daily Hybrid” score, which is a ranking mechanism that combines both technicals and fundamentals to get a daily read out. When the technicals explode during a given day, which is decidedly different from the prior day, the Daily Hybrid score will spike.

I’ve studied thousands of short squeezes and none of them start without a large jump in daily hybrid.

A perfect example of what I just described lies in the share price action in ESI. Here is a recent history of the Daily Hybrid.

Had you bought the stock based on the upgrade to buy on that 40%+ hybrid change, you would’ve been long under $19 with the stock now trading above $25.

The last part of the puzzle is technical ranking. The technical scores must reach a minimum of 2 on a scale of 5, with 5 being the strongest.

Here are the results:

Since tomorrow is the last day of your trial, take advantage of what I am giving to you now and view this screen for more results tomorrow. Since it’s dependent on daily hybrid movers, the population of stocks will change daily.

This is what The PPT is all about, finding an edge in the market by taking all of the data available to us and deciphering it via the power of a predictive algorithm. There are many aspects to the tool. In no way is it one dimensional. But if I had to isolate just one aspect of the tool that I find to be most useful, this is it.

It’s one giant short squeeze. If you’re trying to access the two day trial for The PPT and 12631, sorry, you are too late. The servers at 12631 got smashed due to the unexpected influx of vagabond leeches, numbered in the many hundreds. As a result, we had to close the window of opportunity. Trust me when I say, it’s value add, so don’t be afraid to give it a try.

I closed up on the day, thanks to VHC and CZR, two of my larger positions. However, it wasn’t a gangbuster day, which has me a bit disappointed. I am chockfull of ideas and know exactly what stocks to trade. But I am in a “sell only” mode, as I am fully invested, made my bed; now it’s time to unwind and book gains.

The market is frenetic, and in my experiences, this is when you take the perverted foot off the pedal. Nonetheless, it should be noted, the villain is cloaked in cowardice, afraid to risk; therefore, he is afraid to live.

“Snatch his life away and leave him with nothing: break him.” (BEAS, 1776).

I have a screen in The PPT, one that I consider to be of the golden variety. It tells me the future.

The following stocks will undergo a short squeeze (pay attention)

VHC
HLF
YRCW
ANGI
TEAR
PSUN
ONE
BPI
DMND

MOAR tomorrow.

The coal trade is never an easy one. The government wants to eliminate them; West Virginia wants to stick a pole through their heads. It’s a constant ebb and flow; but the direction of the primary trend is lower. My JRCC trade is dead. However, due to the extremity of recent gains, I’ve opted to hold onto it, just to see what happens.

Many traders are viewing this tape second by second, clamoring for a pullback. They view any downtick in the tape as a sign that we’ve topped. Therefore, validating their own stupidity to remain cautious. Well, you can do that if you like. However, you’re missing out on one hell of a gamblers paradise.

Quit your micro managing and trade the tape.

Stiff pullbacks are underway in AAPL, TSLA and a variety of momo stocks. Some of my momo plays are weakening too, which gives me a bit of pause. However, I have a lot of cushion after the last week of unbridled advance. I’m also “re-excited” about the move in ARG. I am in for the $100 roll and will sell it north of $104.

In short, go eat a sandwich.

CZR is my top holding, as of yesterday, and now is in the process of burying the bountiful amount of shorts who bet against it.

Reminder: I am the Rubicon. Don’t cross me.

NOTE: I added to IMMR and now find myself fully invested.

The market continues higher, following bullish remarks from David Tepper.

I like ANFI, CZR (top holding), VHC and IMMR. Also, as you know, I am long term bullish on FRO.

Some other stocks crossing my radar include ONE, SODA, DMND, ESI and TEAR.

This is a short squeeze tape and the offal is certainly in the ordinary drinking water for mass consumption. This isn’t going to last forever, but it isn’t going to end today.

Therefore, enjoy the grandeur of unchecked market melt ups and be sure to make sacrifices, human if possible, as a form of tribute to the stock markets gods.