What I really like to see are stocks that get their first initial nice pop off the 20,2 LBB.
GLA on 8/29 is a good example.It went to the UBB 3 days later and predictably sold off.
LCCI went from LBB to UBB in 1 day, then got hammered.
You don't find these everyday so it's just another little angle to maybe make you some cash.
The bread and butter of the LBB in the role of shorting though can be found almost everyday,many days more than one or 2.
But only if you can watch premarket (always a catch,huh?).
Find the ones up at least 5%,the higher the better of course, chart them as they hit the leader board.
Find the stocks that are at the LBB.
Many of these will sell off after their initial spike off the leader board.
Try it on paper...watch how many of these will drop 3-5% OFF their then hods,then continue down another 5-10%+.
It ain't gold but it's consistent week in week out decent profits.
Just another angle but they all add up.
Subscribe to:
Post Comments (Atom)
4 comments:
so do you have a SF scan that filters for stocks at the LBB that have popped, or do you scan the premarket leader board and then reverse chart for ones that have come of the LBB... I suppose either would work, just wanting to know your thinking here
Thanks for explaining this Muddy. I'm gonna practice on paper for a week to get the hang of spotting one of these.
Do you think the sell off happens when it hits the UBB because traders realize it hit it? or do you think its just a coincidence?
-gboz
Been looking at this site for a couple days now, but I just started out so for the most part, your site is useless to me, heh. :)
Anyways, http://www.tradingmarkets.com/.site/news/Stock%20News/1867013/
looks like your fav is being delisted!
I thought I'd throw in the GMAC stocks. I spotted them about 3 days ago and have been shorting with good returns in my trading game (fake $, real stocks).
These are really good, check them out if you want some good shorts.
GKM
GMA
And there's 2 more GMAC stocks that are ALL tanking since 05.
Thanks for your site, I hope to learn more in the upcoming month.
-Deylux
Hi Muddy,
Just wondering why you didn't chose to short GGC today, yet it turned out to be the red floater, and dropped off of its high, it was red but I saw you were answering someone you were not shorting GGC. Just want to learn the reason when we should not get tempted to short a stock. Thank you.
Post a Comment