@Legendario , I just watch the market everyday and eventually i noticed these like to crash if they gained too much premarket, and if they get halted and price drops just a tad after a very steep run. I'm also really big on revearsal patterns. If i see a head and shoulders or double top i'm all over it

@awrfisher i think u should track these on excel, thats what i do n i have about 25 examples of big % gainers that closed near their lows n like you've found, they tend to fall the next day

Not a bad idea, i could also probably screenshot the chart as well.

I think this is a solid pattern though, we just have to be able to get out quick in case all of a sudden it breaks out and stock flips bullish. Have you been shorting this pattern as well? I've noticed suretrader has a helluva availablility for shorting these stocks in this price range.

@Legendario , Yeah i should have held longer, i agree with you. I don't like holding for a long time though because the risk is greater, i don't ever hold overnight just because it was under the 2.50 rule, so my broker would liquidate the position if i held overnight. Are you seeing any good plays today? I'm in on $CDTI but it isn't a super great play :(

@awrfisher only good plays i see are REN and SGY as potential shorts tomorrow

@Legendario , yeah there was nothin special today, lol I made 15 bucks shorting CDTI (: look at us being cynics just shorting

@awrfisher im really pissed i missed my entry on BLFS, could've made 200, and ended up breakeven on AVXL, got out at 7.51

SGY was very tough today. Pretty much bounceless. Biggest factor as always is the daily chart for me, perfect example of an overextended daily with SGY - i tried into first push today but didn't really fill (idea being short into friday's 14.50 resistance) and then i added into weakness later since daily was so extended and it was first day red as it cracked 13.20 low of day

so you don't think in terms of %'s with the washouts thinking “oh but it’s such a small move % wise” when the odds are on your side thanks to the daily chart, you try to get a feel that the quick drops are enough to possibly lead to more?

@Legendario ya i'm not thinking in %s, i'm thinking "what's the big picture look like". this run on SGY came from the $8 area, so plenty of room to come back down, not that i'd necessarily be stubbornly waiting for $8 again. it's all about the action relative to that chat's typical range

i had tweeted a few weeks ago i wanted to hammer short at $4. that was when it was extending from the low 2s now. i'm not as interested after all the consolidation and new base in low 3s now, ideally it can get higher and extend more from that new base

most of that original growth was from nailing huge promos early - sadly not really an option anymore. but ya i scaled up aggressively on those because there was so little risk of losing

if the stock is closing red and near its lows, yeah i'd expect that to be a safe swing the vast majority of the time. i actually am starting to swing more and more in those situations myself

yeah on the first day if it flushes hard i will definitely start considering shorting into rebounds as long as i feel there's plenty of resistance overhead. on day 2 i may just leave it alone, depends how it closed and how much it's still up. if i do want to trade it again, same thing, i want pops and clear resistance/risk points

most important thing is keeping yourself mentally comfortable, so really you just have to listen to yourself and take it at your own pace whatever that means. congrats on recent success though!

I don't really do it anymore, they became less reliable and honestly I haven't seen many opportunities with those lately anyway

i mean you can't always know for sure, in most cases they are faders but there are occassional ones like LBIO that just are annoying. even if they don't fade off though, usually if you did a good job of waiting for a pop to short you're going to have a reasonable shot at break-even at worst unless of course you're forced to stop out

thanks for taking the time to respond to the many questions i always ask, i know i probably ask one on almost a daily basis lol