Posted by 5 June 2005

Chart Request: Palomar Medical Technologies, Inc. (PMTI)

Here’s a chart of PMTI for John who’s apparently trying to convince one of his brokerage clients to sell it. Seems like a good idea to me since this looks like a classic short setup.

Update: Looks like Ugly agrees that PMTI is a short.

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Comments

  1. Posted by Howard Veit on June 5, 2005 at 2:37 pm

    Would someone please tell me why a person stays in a stock after it gaps down from its high and then gaps down AGAIN. And if that weren’t enough it went through the 50 day moving average. I think somebody doesn’t know what investing or trading is. As far as shorting? Why? Where can it go from $22? I think there are a ton of other plays out there. If I had a client like that dope I’d get rid of him. He will blame the broker sooner rather than later.

  2. Posted by Michael on June 5, 2005 at 3:08 pm

    Where can it go from 22? How about 20 or the November low of 17 or the August low of 13. I’ll take those gains any day. I agree that there could be better plays out there right now. It’s up to people to find the best plays at any givn time and take those.

  3. Posted by Howard Veit on June 5, 2005 at 6:18 pm

    If you think this is a short, do it with your own money. Risk $2200 to make what? $500? Come on. If you make trades like that you won’t be around very long, and since you’ve been around a while it means you never short something like that.

    I’ve been around the block and I NEVER make a trade if there isn’t a potential of a 300% return. How often do I get it? I’m an O’Niel guy and I make it twice a year. I’ve also been a broker and I know I’d be fired if I didn’t churn the shit out of an account. As a manager once told me, “I’m in this business so I can make money, not so my cliencts can make money.” Looking at it that way you short when you have an excuse and I suppose that chart pattern qualifies.

  4. Posted by Michael on June 5, 2005 at 6:32 pm

    Let’s just agree to disagree

  5. Posted by Scott on June 6, 2005 at 7:09 am

    Howard, where do you get a risk of $2200? Surely, you don’t think someone would short 100 shares of the stock and then watch it double in value before getting out of the position?

    As a long-time trader, surely you use stops. Depending on where you set your stop, you could easily tailor a trade to meet your preferred return/risk profile: 1:1, 2:1, heck, even 3:1.

  6. Posted by Scott on June 6, 2005 at 7:49 am

    The following in my previous post:

    “…then watch it double in value …”

    should have said:

    “…then watch it double in price…”