MATK and FNSR Update

Well, MATK went down early in the premarket this morning. It went as low as $34.20 in the premarket, a .52 cent drop from the fake short point. So I would have easily hit my .30 target. So at 200 shares I could have made $60.00 (minus commissions).

The stock then shot up right at the opening bell to its high for the day of $35.06 followed by a low of $34.07 at around 10:20am. This could have been another excellent short in hindsight. I wasn't really watching the stock at this point so I didn't do another fake short. I also don't really think about shorting the same stock twice in the same day. I like to take my money and move onto the next day. Also, day trading rules must be considered. I am only allowed to have a buy and sell order for the same stock in the same day a maximum of 3 times in any 5 day window. So ideally shorting the day before and covering in the morning will avoid this.

FNSR was another story. This one went up to $5.00 around 10:00am much to my surprise. Now it didn't stay there long so it would have been tough to short (due to my restriction of only shorting stocks above $5). But, if I were able to, and shorted my full amount of 1500 shares, the price did drop to a low of $4.83. A nice .17 cent gain at 1500 shares would be $255.00. My target was a .10 cent drop and I would have been happy with that. Luckily though I didn't/couldn't short after hours the on Friday since it would have been around $4.60. This would have caused a loss and most likely my stop loss would have kicked in to get me out with a limited loss.

This one sort of scared me though. Like I said, I don't think people realize how much they are paying up for the stock when the stocks are so cheap. At the high of 5, that represented an increase of 14.4% from the previous close of $4.37.

Also of note I like to notice that the high was $5.00 which is a psychological number to investors (any round number is really). Many could have set $5.00 as their sell point to take profits since it is a nice target, thus leading to the decline.

Well, Jim is on in 10 minutes! Lets see what he has for us tonight! Hopefully he isn't on vacation this week!