The other day I mentioned how bullish both GEOI and ABLE looked. Well things change quickly. Both of them appear to be topping, at least for the short term. GEOI made a bearish engulfing pattern yesterday and also gave a stochastic sell signal:
ABLE (disclosure: I’m short ABLE) completed an evening star pattern yesterday and also flashed a stochastic sell signal:
People are always asking about shorting these runaway stocks and my attitude is usually one of waiting until they show some kind of signal that they’ve topped and then find a low risk spot to jump in. Here’s an intraday of ABLE (60 minutes candles) that shows some clues that were revealed. Dropping down to an intraday time frame can be a good way to get in early, and with a tight stop, when these things turn.
Just tried to short it in both of my trading accounts and neither one allowed it! Apparently it was added to the SEC restricted list.
My last comment was about ABLE shorting. I forgot to include the ticker symbol.
those shares are hard to come by
With the high short interest and the price of crude oil going up it kind of throws a monkey wrench into the technicals but I think they have hit a short term top and I just sold my position in GEOI. Looking to re-enter down the road but these stocks are just too overbought at these levels.
Gekko
I Exited Geoi at $12.05 yesterday before the numbers came out on inventories. I RE entered this morning at $11.35 when it started to move up again.
I’m playing this one by ear. I can’t get short shares either.
Awesom day 25% in one day. Unbelievable. May take profits in AH. Waaaay overbought.
What do you think about GEOI now after the large run today? I ended up shorting it today at 13.65 right at the close looking for an overall drop in the market/stock/oil prices next week.