doen't matter whether the company stinks, the donouts stink, or they sell in Bagdad. The real issue is that the street is long and adding to their positions and you are short.
Again I say "do not fight momentum". EOM
> My full service broker allows me to short anything
Interesting, but is it legal? I was under impression that you _must_ find and borrow shares before shorting them.
Perhaps your broker is simply more efficient in finding shares than Ameritrade is. And/or Ameritrade doesn't bother to look and borrow from other brokers.
<< OOPS. I guess you should have held in for one more day. That's the breaks. >>
No Sir. Not at all. I found the bigest mistake is going against the chart. I don't like the pattern I get out, no second guessing. Keeps me in the 70% range on shorting. If the worse thing is a breakeven you're doing all right. The only look back is to review the chart to see if I missed something. In this case, classic pennant or wedge tends to breakout up or down large, problem is you only know which direction after.
This week Shorted AMR, MEH, for 15% in 1-2 days. So it's a good week.
My full service broker allows me to short anything. SHort first ask questions later. I don't have to worry about shares in the pool
I do use Datek (Ameritrade) too but often are restricted and in this case they would not let me short KKD.
But thanks for the advice :)
Do you honestly think this board has any influence on the stock price? I'm afraid not. What has been interesting today has been constant selling throughout the morning at the bid price. That means it was NOT short selling which can only take place on an up-tick.
So who is selling? Remember the legal insiders hold millions of shares that they got for nearly nothing - and they know they are wildly overpriced. So they are selling regularly - as much as the market will stand.
Buy some puts. A low-risk way to ride this puppy down. I'm betting it'll be in the 28 range before the May 35 puts expire.
Beautiful day here in San Diego so I'm going flying. I'll check on this baby tomorrow.
Keep the blue side up.
With the volitility of the KKD stock price, it would be interesting to see what happened if everyone here laid off buying short, etc., for a week. Just let the normal investors buy and sell. I bet the price would stabilize and grow.
I agree. KKD is hard to call right now. However, I thought that I would let you know that I am very happy with Ameritrade. Their limit orders cost only $11. It is a good deal for delta traders.
For The Record:
I covered my SHORT yesterday at 34.04 . I took a 0.01 GAIN on 500 shares. virtually breakeven (a loss of $180.00 after comm)
KKD is forming a wedge (pennant) pattern. They are patterns which are not predictable. As such, don't like the odds anymore. Will reshort if a better pattern emerges.
Overall still looks like a long term down.