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
23,433 Blog Posts

Here Are 18 Trading Ideas For Your Monkey Brains

We’re all looking for opportunities. Some of us are retarded, unable to decipher a good deal from a poisonous rat trap. Most of the people I know are illiterates when it comes to investing.  Sadly, these people manage your money. They read magazines and concoct ideas after absorbing hours of financial media, pawning off the ideas of others as their own.

If you’re unable to read, like most investors these days, and can only depend on the “streams” of others, or charts, take note of what I am about to teach you.

This isn’t rocket science and I am not the only one doing it. We are talking about short squeezes, measured using proprietary technical analysis–via algorithms, overlaid on top a few simple data points.

In this case, the most important data point is the amount of shares available in the float. Stocks with less than 20 million shares in the float and considered to be “casino stocks” in the sense that their beta or volatility is extreme, thanks to the inherent nature of so little shares available for daily trade. Conversely, large float stocks, like MSFT, DIS and INTC, move with much less vigor because of their diversified shareholder bases.

After float, I want stocks that have very strong technical readings (trending up) and more than 15% of their respective floats are sold short. In an up trending market, it’s very dangerous to be short low flow stocks. Very simple, if RBCN can attract some natural buyers, via analyst note or news event, the people who are sold short may join these natural buyers in buying back their shares, adding tinder to the low float, causing the share price to spike. It’s a matter of supply and demand in the most basic sense.

There is no guarantee that these stocks will continue upward. But they’re certainly worth keeping a close eye on, possibly buying a few with tight stops underneath.

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12 comments

  1. Belly of the Beast
    Belly of the Beast

    Julian Robertson buying XPO up to 18.50 from 12.00, I’m in at 1.28, reverse split adjusted to 5.12

    Ima greedy sumbich !

    http://www.gurufocus.com/StockBuy.php?GuruName=Julian+Robertson&rec=2&action=buyonly

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  2. Belly of the Beast
    Belly of the Beast

    Bad information all over the net on XPO, and thus their short interest is much smaller, with a legend at the helm.

    IR shows 43.4m shares instead of 17m, and a market cap over 700m instead of 333m.

    Why haven’t they corrected the discrepancies ? ……….. Maybe they’re shy ?

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  3. Belly of the Beast
    Belly of the Beast

    I’ve been pumping them here last summer.

    Got that information from slide 22 of their presentation on this link:

    http://investors.xpologistics.com/phoenix.zhtml?c=204615&p=irol-irhome

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  4. Dog Brained Fund Manager
    Dog Brained Fund Manager

    Godammit. I can’t read this.

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  5. razorsedge

    short squeeze?(hlf).

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  6. figesmalls

    Fly,
    I would like to revisit your position on VHC. In a recent post you mentioned that the hoped for result was taking too long. With all humilty and respect, isn’t that the normal way of the court system, especially with behemoths like AAPL and CSCO looking to fight tooth and nail? Is there any insight you can provide, timewise going forward?
    My monkey brain tells me that they would lose, fight some more and then maybe settle if they use Facetime as a critical component in their TV release at the end of the year. CSCO’s defense simply seems idiotic and is presenting their claim as if VHC’s technology wasn’t relevant. I am simply looking for your opinion since you’ve been quiet about this company recently. This trade was CLEARLY not intended to last a few days as you’ve indicated in prior missives.
    Hope you’re enjoying the day off.

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  7. jackpass

    How do you feel about CPST? I have made a pretty good profit. but they were about to be delisted,and it is my understanding that it must remain above $1.00 for 9 days to prevent this. It is on day 3.I realy like this stock. I bet GE will someday buy it . would you sell or hold?

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  8. mustard seeds

    Blue Horseshoe loves AK Steel(AKS)

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