Trading Notes -- 20190214 Thursday

Added on by C. Maoxian.

Mixed broad tone …HTBs du jour: SOLO (again), RBZ, FUV (latecomer) … scratched a number of marginal things, put on full risk in CYBR (all-time high), no way to reduce risk given time of day. See charts below:

Trading Notes -- 20190213 Wednesday

Added on by C. Maoxian.

Poz broad tone … noticed that since Dec there’s never been three consec down days and rarely two, massive uptrend means no tailwind … SOLO the HTB SDJ today … 88,888 trades at day end … PTX the other HTB SDJ … I shorted SOLO (0.02 borrow) in the morning at C&B avoided adding A (fortunately, partly because I didn’t want to pay for yet another borrow) and stopped out for a 1R loss, well played … then they ripped it to 3 no 4 no (after hours) 5 and maybe 6 as I type this … you gotta honor thy stop … recall that I lost a VAST amount of money recently in APHA from what? not honoring my stop, then my head was screwed up so I couldn’t take advantage of it as it fell and I surely would have made it all back and then some … a loss like COTY yday, that’s a fluke, that doesn’t count, I honored thy stop as best I could, no regrets (helped that it was very small size lol) … covered the rest of APHA Typ3, there’s an example of a fine trade which made back most (all?) of my squeeze out loss earlier, my head was still in the right place with that one… some of the late day things I put on yday I scratched, just a waste of time (and commish) .. covered some PTI at an adjusted minC, will scratch the rest if it bounces, it’s dead 3980 trades today … shorted PYX messed up by not getting an add at B but I was busy and there were a million things in play today, at least I got the main size on … shorted YGYI covered minC waiting below with rest … tried to short GSUM, no spot but free borrow made me look hard at it … shorted RKDA, DBD, will see what happens, may end up scratching or taking a loss, who knows.

The Spoiled Children of Liberty

Added on by C. Maoxian.

Liked this bit from an interview with Midge Decter in October 2001:

I think we're living as people have never lived before. Never. And we don't know our way. We don't know how to do this. We don't know how to live into our 90s. We don't know how to live without physical suffering. We don't know how to accept hardship, and when it comes, it feels like an injustice. The things that people lived with always throughout history, we--we find ourselves cut off from the sources of human wisdom and experience because this life is so new and we are bewildered. I think we are.

Trading Notes -- 20190212 Tuesday

Added on by C. Maoxian.

Snow day, kids home, poz broad tape, COTY tender whammy, not a small cap after all, PYX VKTX TROX CVNA CHGG WORX (0.05 borrow) MIME … lotta earnings, still waiting below in AMRS ARRY PTI … VKTX good and bad

Trading Notes -- 20190211 Monday

Added on by C. Maoxian.

May write more later … AVCO SPI PTI OTLK AMRS

Techniques Employed by Manipulative Short Sellers

Added on by C. Maoxian.

Found this comical section among the Risk Factors in some Chinese company’s filings:

Techniques employed by manipulative short sellers in Chinese small-cap stocks may drive down the market price of our common stock.

 

Short selling is the practice of selling securities that the seller does not own but rather has borrowed from a third party with the intention of buying identical securities back at a later date to return to the lender. The short seller hopes to profit from the difference in the sale price of the borrowed securities and the purchase price of the replacement shares. As it is therefore in the short seller’s best interests for the price of the stock to decline, there have been incidents of short sellers publishing, or arranging to publish negative opinions in order to create negative market momentum. While traditionally these disclosed shorts have been limited in their ability to access mainstream business media or to otherwise create negative market rumors, the rise of the Internet and technological advancements regarding document creation, videotaping and publication by weblog (“blogging”) have allowed many disclosed shorts to publicly attack a company’s credibility, strategy and veracity by means of so-called research reports that mimic the type of investment analysis performed by large Wall Street firms and independent research analysts. These short attacks have, in the past, resulted in the selling of shares in the market, on occasion on a large scale and broad base. Issuers with business operations based in the PRC, that have limited trading volumes and that are susceptible to higher volatility levels than U.S. domestic large-cap stocks can be particularly vulnerable to such short attacks.

These short seller publications are not regulated by any governmental, self-regulatory organization or other official authority in the U.S., are not subject to the certification requirements imposed by the SEC in Regulation Analyst Certification and, accordingly, the opinions they express may be based on distortion of the actual facts or, in some cases, fabrication of the facts. In light of the limited risks involved in publishing such information, and the enormous profit that can be made from running just one successful short attack, unless the short sellers become subject to significant penalties, it is more likely than not that disclosed shorts will continue to issue such reports.

 

While we intend to strongly defend our public filings against any such short seller attacks, oftentimes we are constrained, either by principles of freedom of speech, applicable state law (often called Anti-SLAPP statutes), or issues of commercial confidentiality, in the manner in which we can proceed against the relevant short seller. You should be aware that in light of the relative freedom to operate that such persons enjoy – oftentimes blogging from outside the U.S. with little or no assets or identity requirements – should we be targeted for such an attack and the rumors not dismissed by market participants, our stock will likely suffer from a temporary, or possibly long term, decline in market price.

Market Value of Publicly Held Shares

Added on by C. Maoxian.

If you’re a small cap short seller, this is one of the key things you have to understand:

(D) Market Value of Publicly Held Shares

A failure to meet the continued listing requirement for Market Value of Publicly Held Shares shall be determined to exist only if the deficiency continues for a period of 30 consecutive business days. Upon such failure, the Company shall be notified promptly and shall have a period of 180 calendar days from such notification to achieve compliance. Compliance can be achieved by meeting the applicable standard for a minimum of 10 consecutive business days during the 180 day compliance period , unless Staff exercises its discretion to extend this 10 day period as discussed in Rule 5810(c)(3)(F).

Here’s Nasdaq’s Continued Listing Guide (pdf) from January 2019. The market value standard is currently $15 million. Once you know the size of the company’s common share float, you can quickly figure out what price “they” are trying to maintain for 10 consecutive days. Then you act accordingly.

Movies Watched -- Revenge (2018)

Added on by C. Maoxian.

108 minute running time. Some French language. Rape-revenge movie, ultra-violent and gory, buckets of blood, not leavened by enough humor, fairly low budget, girl in bikini toting heavy weaponry, this appeals to teenage boys, I guess … you know, sex and violence and “revenge” without any subtlety … no idea why it’s 92% fresh at RottenTomatoes, the rating system there is next to useless… avoid it, unless you’re a certain kind of teenage boy.

Lena Wilson correctly writes: “… though the film makes a valiant effort to subvert a sexist formula by shrouding itself in French art film trappings and pseudo-empowering femininity, it ultimately falls prey to its exploitative roots … the film sets itself up for feminist failure by buying into the violent rape-revenge premise at all.”

Tomb Raider Jen

Tomb Raider Jen

Movies Watched -- Beast (2018)

Added on by C. Maoxian.

107 minute running time and I could have cut out seven minutes to make the sacred 100 minute mark, but it wasn’t overly long, which is the case with nearly every movie made today. I liked this one, even though it’s a W.D. By movie (written and directed by the same guy).

It’s a sort of horror / thriller / mystery. Mental illness, stifling family relations (Mommie Dearest), island life (Jersey) … I liked the class angle (as always) … lead actress was good, really good, amazing red hair, I think she’s Irish, reminds me of Sally Hawkins … movie has a strange vibe which is kind of wonderful, thanks in part to the cinematographer.

It’s not a great movie, but it’s unusual and good enough to get a recommendation from me. Green light, go.

You need help.

You need help.

Trading Notes -- 20190208 Friday

Added on by C. Maoxian.

Weird mixed tone with eod spike (see chart below) … brief notes … quiet Friday … lowered stop on AMRS and they jammed me out which was of course a perfect spot to add, so I instantly re-shorted (revenge trading much?) but I still think I’m right and this was so low-volume shenanigan BS, dummy de-Gentile revealed his big short so now they have to drive him (and me) out … SNNA the only HTB play, miraculously IB got me some shares but not even enough for a full fill on ONE leg, annoying and messes up the whole thing, thank god it worked otherwise I really woulda been annoyed … used bookie broker (0.0369) to short some more but again couldn’t leg in due to PDT, dumb, must get money over there but I’m worried about the bookies booking back to Bermuda or wherever :-) But SNNA a beauty entered C, got no adds (see above) but got lovely minC Typ3 exits for a solid win… if you were playing the morning “flag” breakout you surely woulda been trapped and crushed a real disaster but that never happens to anyone at least on TWTR, ya know… COTY an earnings play and I was a little smartassy shorting the PO B level or at least I think that’s what I was doing, didn’t wait for C which I think is a rule, innit?, but of course it went against me and I was good about not adding in the PM (for once!), will be a small loss if I don’t pull the stop which I very well might since I’m a sicko… ARRY not getting to minC and I wish it would before ToS gives me another margin call in my rapidly diminishing $4K account, lol … HYRE was a yday HTB SDJ and today it did under a thousand trades EOD talk about being StuckAtaProfit don’t worry no one holds overnight with the 7x fee sheesh. BIOC did an offering PO those dirty bastards, I recall shorting $3 just the other day and now it’s $1, but again, 7x ON holding cost. Usually I lose money on Fridays, often lots, but SNNA saved me today (bookie broker borrow the key there).

Lost and Lonely

Added on by C. Maoxian.

I dig this cover of what is probably The Cure’s best song. The bassist’s primal roar made me laugh out loud.

Americanization

Added on by C. Maoxian.

From this interview with Barbara Crossette:

“… but what is Americanization? You know, I'd say to people--they'd say, `Well, you know, Coca-Cola, you know, rock,' whatever. It--you know, it's not. It's--it is, but it isn't. And some of these things are--come from--it's human rights, it's the rule of law, it's the fact that the education system--we run it down all the time, but basically it works. Why do so many people want to come here? Because they know that when they come--if September comes around, the school's open and the children go to school, you turn the tap and the water comes out, electricity works, that the police have problems, but that there is a police force that, if your house is burglarized, you don't have to go down to the police station and bargain for how much money you have to pay for them even to register the case, people don't steal the stamps off your envelopes--I mean, the sense of civil society that works.”

I spent ten straight years in China, which made my love for America, and everything it stands for, that much stronger.

I also liked this line from her Singaporean friend, which is a folky version of 仓廪实而知礼节:

“When the tummy gets full, the mind gets hungry.”

Trading Notes -- 20190207 Thursday

Added on by C. Maoxian.

Broad tone neg, first trend day down in ages … I got a margin call in my $4000 ToS account on the ARRY as they gapped it against me, that was a surprise, never seen such a thing, it must suck to be a little guy, any kind of day trading just impossible if you’re short stacked, no wonder the kids go to the sleazy offshore bookie brokers, they don’t have a choice … anyway stopped out of ARRY and re-shorted it immediately in both ToS and IB. AMRS looked weak so I did the Smashian in the money add and it instantly went against me. Added more off today’s OR, but they drove me out. Made a sorta mistake not tightening stop on it, but did end up taking 1R loss (on one leg only, coulda and shoulda been three legs given morning action but I was confused by in the money add and old posish so thankfully took a smaller loss than I should have) on today’s trade … the larger AMRS play still underway, even added some more at C which was only semi-wise? Covered some MGNX at D since the range is so crazy there, I’ll be happy to be all out at minC, fingers crossed it’s way down there… two decent HTB plays this morning HYRE and ATOS (see below), I played neither, PULM a latecomer and instantly failed, I never woulda been quick enough, BIOC also briefly in play, I didn’t take the borrow, LCI earnings thought I’d get a play but they slammed it so hard during OR it was finished.

Trading Notes -- 20190206 Wednesday

Added on by C. Maoxian.

Broad tone slightly neg … my trading vacation hasn’t started yet since I needed to close up some old positions … and establish some new ones out of a sick need to gamble, lol. Adjusted targets in APHA and took it off for a decent profit, turns out the crazy sized add would have been good to hold on to but no I prudently scratched it, same goes for ZYNE which broke down dramatically but I had scratched the giant add so just took a normal minC Typ3 gain, which was impressive enough on its own… NVLN and TRVN the HTBs of the day, I was fortunate to choose TRVN (0.02) since it was picture perfect (see below) with a C entry and minC Typ3 exits, took a late in the day trade in ARRY in ToS and of course it looks like it will stop me out, zero for two in that account, ha! Something call MGNX, I called it Magnavox, went nuts, started shorting too early PO but it was fine since I sized it correctly (thank god) and got good adds at B & A, but I still might not make a dime in it, we’ll see, 1.5MM shares avail made it a must play, shorted AMRS again, we’ll see how it goes. EOLS woulda been a good play but I had a lot going on and went to gym at midday which will be a good new habit.

Tigers in Tiny Spaces

Added on by C. Maoxian.

I dig these old farts … that lead guitarist is almost exactly my age … the entire band shares my sartorial and grooming style.

Trading Notes -- 20190205 Tuesday

Added on by C. Maoxian.

Broad tone poz, shorts no tailwind. CRON woulda been a perfect trader but IB doesn’t have shares anymore. Got trapped in APHA end of day yday, stupidly tried my triple/quadruple sized scalp thing for the first time and of course got stuck, then pulled the stop, then added several times, then pulled that stop (all after hours) then carried it, then covered near top tick pre-open though not exactly top tick, then it got smashed at the open falling over a dollar from my cost, which meant that my loss was over 4x expected and if I hadn’t covered I woulda made a ton of money at the open… bad, very bad. But the story doesn’t end there. Shorted AMSR, IB miraculously found shares (now I know why), broke out of a giant coil, problem was my sizing on first entry was 2x normal so the eventual loss when I stopped out (didn’t pull that stop) about 2x average, bad. Then I re-shorted APHA in a disciplined way but added again 4x normal? and it went against me. Then I added to my ZYNE short (which was doing fine) 4x normal and it went against me. Notice a trend? Rough day. I’m going to walk away for awhile until I get my head on right. Might be at least a month given the extent of the losses.

Trading Notes -- 20190204 Monday

Added on by C. Maoxian.

Broad tone poz … short headwind … once again I left a bunch of open orders out there in ZYNE and APHA by mistake and got filled in everything … wasn’t super bad but I did have to pull the plug on APHA higher than I wanted and with more shares than expected… ZYNE sorta tanked so I may be ok there, we’ll see. Stock du jour was EOLS PO (0.032 borrow) and I shorted B&C and covered minC then waited on Typ3 but it had to go back up and test so I scratched it. Had massage today so didn’t stick around to manage stuff. Had orders back in on APHA, got back just after 3PM and APHA was tanking so I decided to try my new super-sized scalp and of course it reversed on me (Murphy’s Law) and went exactly a dollar higher, closed 11.40 AH (scary when you’re doing nutty size, IB thank god still have 500K+ of borrow, my nightmare is that they disappear at the top, after taking multiple 1R losses), anyway CRON also very much in play but IB had NO shares and that was weird because they’ve had a lot of CRON forever now; covered SXTC at minC and Typ3, StuckAtaProfit, took forever to cover, I was the bid for ages, huge winner but of course pales in comparison to APHA losses… OPK I cut at the close and 30 seconds later they announced an offering and it dropped 20%, comical. Some Chinese fraudy thing called ZKIN came alive late (“latecomer”) and there was literally no data to populate the chart so I couldn’t see what was going on… no borrow of course but it just faded to nothing … MDJH was sorta active PO but again no borrow and it died in RH. Recalling when NBEV went from 2 to 10 and I fought it all the way taking a mega-loss then borrows disappeared when it hit $10, I pray same doesn’t happen with APHA though loss there could make NBEV look like drop in bucket.

Movies Watched -- Silence (2017)

Added on by C. Maoxian.

160 minute running time, insane. Adam Sackler (why does this guy get so much work?) and some other kid I've never seen before as Jesuit priests on a mission to Japan (1640s) to find lost priest Liam Neeson and convert the locals or minister to the already converted, who are being mercilessly persecuted ... Scorsese is interested in religious persecution and martydom, but it doesn’t make for a good movie. 160 minutes of torturing the audience. Who funded this?!? Red rating, avoid.

Kyle Smith correctly writes: "30 years in the making ... it plays like 30 years in the watching."

Manohla Dargis writes: "There’s a crushing lack of urgency to this story and its telling...."

Mick LaSalle writes: ”‘Silence’ is Scorsese at his worst.”

Michael Phillips writes: “…methodical and stately to a fault.“

Kate Taylor called it a “failed passion project”

Tortured members of the viewing audience

Tortured members of the viewing audience

Movies Watched -- Logan Lucky (2017)

Added on by C. Maoxian.

119 minute running time. Watched at 1.5x ffwd. Heist movie / redneck comedy made by snotty coastal elites ... making fun of southern (West Virginia) white trash culture: old pickup trucks, NASCAR, child beauty pageants, camo Carhartt caps, The Google, two tours in I-raq, everyone's tattooed, etc. ... goateed Channing Tatum as hobbled ex-coal miner, with Katie Holmes (she’s ageing well) as his ex- and Adam Sackler from Girls as his brother.... blonde Daniel Craig (his explosives explanation with chalk was funny) .... Hilary Swank plays Arnold Schwarzenegger ... fake Southern accents were grating and offensive ... sets up for a sequel, oh no! ... directed by Steven Soderbergh?!? It was at least 20 minutes too long, but it wasn't super duper terrible. Yellow rating.

Rex hated it (but he has always loathed Soderbergh).

Miner's alien daughter, stranger to blue water

Miner's alien daughter, stranger to blue water