I got a few names for you. There are so many options in The PPT, I doubt many have every fully grasped its capabilities.
This screen is a personal favorite. It looks for stocks that are within 1% of intra-day highs, up more than 2% for the session, average daily volume of 500K, and with 10%+ of the float sold short. In other words, here are some heavily shorted, liquid, stocks that closed near the highs of the day on Friday, into strength.
KOG
COTY
XOMA
KING
NAVB
MDR
IDIX
ENT
VRNG
CDNS
The very essence of a short squeeze relies upon relentless strength in a heavily shorted name, forcing bears to cover, out of fear of realizing substantial losses. During periods of irrational upticks, like now, I’ve found short squeeze plays to be the easiest places to make short term gains.
People belonging to your bloodline decided to vacation and go for a swim at Omaha Beach, France. Fast forward to today, you stupid shits are shorting the biggest, baddest, bull market the world has ever seen.
My sales from yesterday did not hurt me in the least. I speak to you today a victorious man, one who triumphs over the augured skulls of his enemies, as if they were the devil’s children themselves. I admit to harboring an unfiltered, unvarnished, hatred of sorts towards the people who’ve tried, repeatedly, to knock me down. My enemies have stormed the gates thousands of times and have always received the sharper end of my spear. In the end, everyone gets what they deserve.
On this glorious day of our lord, June the 6th, 2014, all of the bears, men of unreasonable countenance, are receiving “The Black Flag” of total annihilation.
This was supposed to be a milquetoast summer. However, it’s turning out to be a rather hot one, if I might be so bold, indeud.
I’d wish you good luck; but you wouldn’t know what to do with it anyway. The only course of action available to you now, oddly enough, is capitulation. The margin clerks are eyeballing your equity levels and notice that your positions are concentrated. Very soon, they will up your requirements, forcing you into liquidation or to ante up cash to fill the gaps–no different from idly tossing bags of money into flaming barrels of garbage.
As for me, a mere servant of the trends, a man with humble beginnings and a magnanimous ending (time machine), I’ve super-sized TEDU, started AEGR and another stock–soon to be announced here, on this very day.
Cash levels have been reduced to 15%. You bitches are gonna learn today.
Today’s jobs numbers have taken the crescent away from his moon, the hammer from his sickle and his pipe from his nuts. In what appears to be a sick gag played upon the American bear, CNBC continues to trod a 1950’s styled Rickard Santelli to his death-march, in a very Groundhogs day manner. Each and every day Rickard goes on the television set and makes outrageous claims and predictions–all pointing to sharply lower stock prices. When stocks do go lower, if even for a single day, his spirits are elevated and he screams at anyone who gets in his way, sort of like a rabid pitted bull stoked on gunpowder.
Following this morning’s better-than-expected jobs report, Rickard told his co-host, Steve “the liar” Liesman to “go back to Russia where you belong”, a play on words no doubt, as Steve used to reside in the democratic state as something of a media titan.
S&P futures are higher. The stock market looks to make fresh gains, all the while defecating onto the face of a certain Rickard Santelli.
I comb over a lot of market data on a daily basis. While you people bounce beer cans off each other’s heads, I am trying to position myself for the next trade. The fact that I work much harder than all of you laymen humbles me to the 33rd degree, especially since I sit here, idly, attempting to time a market top. I do not want to time market tops, nor do I really thing we are at one. There simple fact that many of my stocks didn’t work today caused me to immediately reassess my position and head to cash. The alternative would’ve been to ignore weakness in a robust tape and find myself without arms and legs, yet again, the very next day.
I tell you now: I shall never be without my arms and legs again.
An interesting side note, I finally ditched my Keurig device in favour of a traditional French Press. I find the French Press to make a superior cup of black coffee, bringing out the natural oils in the bean. This is interesting news for you because I hopped on the GMCR bandwagon before 95% of the world started to re-gift it to one another.
Back to my plan.
I loved JAZZ; but it was never going to give me XON-like returns. I did a study on the recent winners and found that 60% of stocks up 20% or more, over the past month, traded under $30. Over 90% of them trade below $50. Being down 26% at the halfway point of the year is an awfully large deficit to climb out from. Over the past month, I’ve been able to make back more than 10% and find myself in an unusually strong position, as clients are content with past performance, new money is coming in, and I feel like I have a handle on this market.
JAZZ was a GARP stock.
HBI was a conservative stock.
SLCA was a GARP stock.
And XON was a speculative stock.
However, both JAZZ and SLCA were super sized positions, twice as large as my other ones. I could either replace JAZZ and SLCA with 4 regular sized positions or two super-sized, bought over a number of trading sessions. The conservative stock will be easy to replace and XON is my play money.
Ideally, the market trades down a little and I get a chance to catch an inflection point, making 10% off the 50% cash, putting my YTD losses at around 21%–providing my current holdings trade flat.
I haven’t been in a hole like this for a long time and I am skeptical if I will be able to pull it off this year. But I’ll be damned if I didn’t try.
I once mentioned a guy I used to know who’d say “I am making lateral moves.” I thought it was one of the dumbest things a person could ever say, at the same time be hilarious. I’ve adopted this verbiage as my own and share it with you now.
This is going to come across as controversial. Then again, see if I care.
I sold out of XON, JAZZ, HBI and SLCA–my favorite positions, for 33%, 5%, 3% and 6% gains. I did this because the market isn’t buying them today, a day when 80% of stocks are higher. These are drastic moves, but it’s coming from a drastic man–so everything is ordinary, as a matter of fact.
Plainly, the market is buying trash today: FEYE, CRCM, SPLK–they’re all up. If we head into a rotation, out of good stocks back into garbagio, I’d rather not partake in it. I have a lot of ground to make up and feel by going to 50% cash on a day that feels like a blow off top, I am ahead of the curve.
