This morning when I woke up, the first thing I remembered and I need to do was to post in the SMMG Club to let all my students know that GLP was filled with heavy sellers and it's a good day to short. So 2-5 minute before the market opened, I made my outlook on GLP that it contained heavy sellers and looking to short soon. Some students shorted GLP and was rewarded for the day with good profits as shown on the attached. The best part about this trade was there wasn't much emotion attached because the short was a safe one where if one shorted either at 2.85 or 2.84, the stock just kept bleeding profusely.
Now, to short on a bullish day is quite a risk. The overall market today was pretty bullish but still I dare to make a short call on GLP. Why? Because based on supply demand point of view, if a stock is weak, it doesn't matter if the big wind is bullish or bearish, the stock would still trend lower. If the insiders are bearish, they would look to sell and book profits than to go long right? Just take the case of Biosensor yesterday, the stock crashed on a bullish day!
http://stockmarketmindgames.blogspot.sg/2013/08/biosensor-big-crash.html
Supply and Demand takes more predescent and carries more weight than correlating Dow Jones / Hang Seng / Nikkei before making a decision, which makes one confuse, narrow and limited!
Ronald K - Market Psychologist - The Big Speculator
