Stock Online TraderBulls & Bears Make Money, Pigs Get Slaughtered…Let Us Not Be That Pig…

I see similar trend again and again. I have listed 9 such stocks. All of these stocks have had huge run-ups and then that has been followed by big dump and selling.

There are three main reasons why the selling is normally heavy.

1. Short sellers looking to sell this pump as it enters over-bought territory

2. Momentum/speculators traders who bought this early now start dumping to take profits

3. Long term investors who got suckered into buying this stock, would want to get out at the first sign of selling and reduce their losses

ANTF has nice runup from 1.40 to 3.06 close. The interesting thing is that the volume is fading now. Can this be end of the runup ? Just watching.

BGBR is scammy/junky stock. Hard to find shares otherwise this is no-brainer to short.

IBCP has huge spike from 0.70 cent to 1.90 before closing 1.46. Huge volume today, however faded after the spike. Need more spike to short into. Just watching

FNBN is similar to IBCP, spike from 1.00 to 2.10 before fading to 1.68. Need more spike. Up on only sector news.

RVSB is in same finance sector as FNBN and IBCP. Up from 2.25 to 3.47.  However it closed on high note 2cents below high of the day. Just watching.

CADE doubles from 2.00 to 4.12 in matter of a week. This has legs. Wait and watch

ARRY dropped on downgrade. It closed at 3.71 and might be heading lower. This is pure scalp play, since not huge downside.

CUR has good base at 2.00 and now spikes to 2.99 close. With break of 3.00 this will possibly go higher. I am watching for short entry.

DRL tries to bottom out at 5.50 and spikes to 6.40 yesterday. However today it sold off to 6.10. Tough one to play. Not sure if 6.00 is a good support or not ?

PURE finally spikes out of boredom range. 2.50 looks like a good support, and its trying to trend higher now. I wanted to short it below 2.50 support. Now no real play yet. Just watching to see if it breaks 3.00 resistance.

INTT spikes on positive earnings new. However it did not hold up its gains. Is it a short below 3.00 ? Not sure, probably wont play.

ROHI has gone crazy and possibly the best short out there. Up from 60 cents to 2.80. How higher can it go ? Hard borrow though. I got a jab at it with small short @2.73

Recently I was looking at how some of the small cap stocks have done after their huge rallies, especially those that were up on fluff news or plain momentum.

I see a common pattern in all of them and that is the trade I like to be involved in.

Lets look at some charts

ABIO spikes huge from 2.75 to 9.00 in one day. After that ? Slow and steady death. See how the volume keeps fading.

CDII doubles up in a week from 1.20 to 2.50s. After that ? Check again the drop in volume.

CNLG turns out to be bit tricky. Spikes, then drops, then spikes huge. After that ? Slow and steady death with few small spikes along the way.

ENCO was bit hard nut to crack. Spikes, then drops, then spikes again, and consolidates, and re-spikes and finally cracks.

HMNA spikes on fluff news and momentum takes it higher. Up from 1.00 to 3.50s in no time. After that ? Where have you seen this type of chart before ??

IDN runs up on sector news. Squeezes the early shorts to trend higher from 1.25 to 4.00 with huge volume. After that ? Slow and steady death. No looking back.

IFLG same pattern. Spike, spike and after that, slow and steady death. Volume dies out

PRAN up on old news.  Momentum traders take it higher. Huge volume. Next day ? Any guesses what is expected ?

RDCM spikes, fades, spikes, fades. Tricky bastard, but eventually going where it should be. I was lucky enough to short this one at @5.90, covering today @4.80. Definitely early, but I covered since they report next Monday. Playing it safe.

RPC spikes from 0.25 cents to 2.50. Huge runup. Once the selling starts, where does it go ? More fading expected. Volume fading perfectly.

SSY spikes from 1.50 to 4.50 (3x runup) on health care sector news. Nothing to do with SSY. Huge volume on runup. Once selling starts ? No where but DOWN

TEAR….no need to say anything more…you get the picture

ZANE is a fighter. It was doing exactly as expected. But it decides to spike mid-way. However it was short lived. DOWN she goes…