Stock Market Day-Trading Discussion Thread

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[quote author="blackvault_cm" date=1226575682][quote author="socalmd" date=1226575256][quote author="blackvault_cm" date=1226293728]<blockquote>The 52 wk range of this stock is .007 and went up to .08. It's illiquid now, but who knows what the future holds. Nobody even knows this is a functioning company. Totally under the radar. The company smartwear has about 5 million in cash it raised from private placement investors. I don't need this money so I don't have to dump all at once. I plan on holding for a few years. Building a solid company takes time. Just keep it on your ticker.



Funny but true story...growing up my Dad was my soccer coach and our assistant coach was involved in a startup and he asked my Dad to be an investor. My Dad said no way that's too risky. The company turned out to be Pacificare and the assistant coach now lives on the water in Newport. My Dad lives in a 300K house in Murietta.</blockquote>


Someone really fed you some bullshit before you wrote a check to invest into a company worht .01 a share....sigh...I almost feel bad for you.</blockquote>






don't be a hater. I didn't tell you to go buy it. All I said is that I know the CEO and I know extensively about their business plan. I was going to invest in the private company, but those shares are restricted. Have you ever heard of being and angel investor? Many people have made quit a bit of money on startups. Did you know microsoft was a penny stock at one time? In a year's time if GLGT is still .01 or less I will admit I made a bad investment.</blockquote>


Yes I'm hating I didn't give some claim to be CEO 50K and received shares worth a penny each. I'm so angry now, I wish I was you.</blockquote>




Actually I invested(probably the better term in gambled) 200K. Hey at least I'll have a good sized tax write off.
 
[quote author="blackvault_cm" date=1226575139][quote author="socalmd" date=1226574957][quote author="tenmagnet" date=1226368838][quote author="blackvault_cm" date=1226368058]

Not sure what a reverse merger is, maybe he meant reverse stock-split? A reverse stock-split will help the company now being listed on the regular exchange which can raise capital. However, I believe you need the stock to be atleast at 0.50 cents a share before you can do reverse stock-split. They are ways away.</blockquote>


You?re right, think he mean?t reverse stock-split.

Misunderstood what he said.

Thought he was referring to one company got rolled up into another using a reverse merger.

Thanks for breaking it down</blockquote>




wrong(respectfully)



I meant reverse merger, not reverse stock split. In fact the reverse merger...The merge of smartwear technologies into GLGT(shell) is finalized from what I understand. Reverse stock splits are almost universally bad, however reverse mergers can be lucrative if the private company(who now becomes public) actually has some revenues.</blockquote>


We know. It was described in detail a couple of posts later if you took the time to read it. Damn this was ages ago too.</blockquote>




Maybe you should pay attention to your faulty post about reverse splits and reverse mergers. Obviously you have no knowlege of either. Maybe you should recuse youself.
 
[quote author="blackvault_cm" date=1226575139][quote author="socalmd" date=1226574957][quote author="tenmagnet" date=1226368838][quote author="blackvault_cm" date=1226368058]

Not sure what a reverse merger is, maybe he meant reverse stock-split? A reverse stock-split will help the company now being listed on the regular exchange which can raise capital. However, I believe you need the stock to be atleast at 0.50 cents a share before you can do reverse stock-split. They are ways away.</blockquote>


You?re right, think he mean?t reverse stock-split.

Misunderstood what he said.

Thought he was referring to one company got rolled up into another using a reverse merger.

Thanks for breaking it down</blockquote>




wrong(respectfully)



I meant reverse merger, not reverse stock split. In fact the reverse merger...The merge of smartwear technologies into GLGT(shell) is finalized from what I understand. Reverse stock splits are almost universally bad, however reverse mergers can be lucrative if the private company(who now becomes public) actually has some revenues.</blockquote>


We know. It was described in detail a couple of posts later if you took the time to read it. Damn this was ages ago too.</blockquote>


Face it, there's no escaping GLGT.PK! You know you want to add it to your long term portfolio!
 
[quote author="socalmd" date=1226575256]don't be a hater. I didn't tell you to go buy it. All I said is that I know the CEO and I know extensively about their business plan. I was going to invest in the private company, but those shares are restricted. Have you ever heard of being and angel investor? Many people have made quit a bit of money on startups. Did you know microsoft was a penny stock at one time? In a year's time if GLGT is still .01 or less I will admit I made a bad investment.</blockquote>


No, Microsoft was never a penny stock. If memory serves me correctly, it IPOed at $16 a share. Because of numerous splits, the effective cost to people who bought at IPO and held is measured in pennies per share. But the only way anyone ever bought MSFT for pennies a share is if they had options (either as an employee or investor) from before the IPO.
 
[quote author="WINEX" date=1226581749][quote author="socalmd" date=1226575256]don't be a hater. I didn't tell you to go buy it. All I said is that I know the CEO and I know extensively about their business plan. I was going to invest in the private company, but those shares are restricted. Have you ever heard of being and angel investor? Many people have made quit a bit of money on startups. Did you know microsoft was a penny stock at one time? In a year's time if GLGT is still .01 or less I will admit I made a bad investment.</blockquote>


No, Microsoft was never a penny stock. If memory serves me correctly, it IPOed at $16 a share. Because of numerous splits, the effective cost to people who bought at IPO and held is measured in pennies per share. But the only way anyone ever bought MSFT for pennies a share is if they had options (either as an employee or investor) from before the IPO.</blockquote>


He is just trying to defend his position and convince himself that he made the right move.



Is that a joke though? When he corrected me and said he put down 200K? If he has 5M shares isn't he down 150K already? If he gave me 200K, i would have made him 200K on top of it in the past 2 months alone.
 
[quote author="blackvault_cm" date=1226582084][quote author="WINEX" date=1226581749][quote author="socalmd" date=1226575256]don't be a hater. I didn't tell you to go buy it. All I said is that I know the CEO and I know extensively about their business plan. I was going to invest in the private company, but those shares are restricted. Have you ever heard of being and angel investor? Many people have made quit a bit of money on startups. Did you know microsoft was a penny stock at one time? In a year's time if GLGT is still .01 or less I will admit I made a bad investment.</blockquote>


No, Microsoft was never a penny stock. If memory serves me correctly, it IPOed at $16 a share. Because of numerous splits, the effective cost to people who bought at IPO and held is measured in pennies per share. But the only way anyone ever bought MSFT for pennies a share is if they had options (either as an employee or investor) from before the IPO.</blockquote>


He is just trying to defend his position and convince himself that he made the right move.



Is that a joke though? When he corrected me and said he put down 200K? If he has 5M shares isn't he down 150K already? If he gave me 200K, i would have made him 200K on top of it in the past 2 months alone.</blockquote>


He did say that he bought in at .04. If you look at one of my earlier posts, the last time GLGT.PK was at .04 was 6/4/08. That's not too long after the reverse merger between Smart Wear and GLGT. I assume he bought in between 5/28/08 and 6/4/08
 
[quote author="WINEX" date=1226581749][quote author="socalmd" date=1226575256]don't be a hater. I didn't tell you to go buy it. All I said is that I know the CEO and I know extensively about their business plan. I was going to invest in the private company, but those shares are restricted. Have you ever heard of being and angel investor? Many people have made quit a bit of money on startups. Did you know microsoft was a penny stock at one time? In a year's time if GLGT is still .01 or less I will admit I made a bad investment.</blockquote>


No, Microsoft was never a penny stock. If memory serves me correctly, it IPOed at $16 a share. Because of numerous splits, the effective cost to people who bought at IPO and held is measured in pennies per share. But the only way anyone ever bought MSFT for pennies a share is if they had options (either as an employee or investor) from before the IPO.</blockquote>


OK, my memory was a little off. <a href="http://blog.seattlepi.nwsource.com/microsoft/archives/102018.asp">Here is an article from the IPO.</a> It opened at 21 and closed the first day of trading at 27.75.
 
I sold off my 4 QQQQ puts and 2 Dow puts at round 7am because it looks like they are gonna try to rally this thing today. If I miss more gains today and tomorrow, oh well...I'm traveling and I wanted to book profit on both trades.
 
[quote author="usctrojanman29" date=1226617505]I sold off my 4 QQQQ puts and 2 Dow puts at round 7am because it looks like they are gonna try to rally this thing today. If I miss more gains today and tomorrow, oh well...I'm traveling and I wanted to book profit on both trades.</blockquote>


Looks like you and I are in the same boat... the boat that sold too early. The BAC puts I would be up big right now, and your puts would be headed higher. Oh well, I would rather make a little money than lose any money. 8200 is the support level for the DOW, it has been getting close to breaking it, the trend is showing that it could, and if it does... look out below.
 
[quote author="graphrix" date=1226621063][quote author="usctrojanman29" date=1226617505]I sold off my 4 QQQQ puts and 2 Dow puts at round 7am because it looks like they are gonna try to rally this thing today. If I miss more gains today and tomorrow, oh well...I'm traveling and I wanted to book profit on both trades.</blockquote>


Looks like you and I are in the same boat... the boat that sold too early. The BAC puts I would be up big right now, and your puts would be headed higher. Oh well, I would rather make a little money than lose any money. 8200 is the support level for the DOW, it has been getting close to breaking it, the trend is showing that it could, and if it does... look out below.</blockquote>
Yup, I already learned the hard way not to be too greedy. My grandfather also used to tell me..."the greedy lose twice." Plus I didn't feel comfy about not being able to trade starting at 10am until Monday because you and I both know the market can rally 10% in one day. Remember too, tomorrow always brings new trading opportunities.
 
[quote author="usctrojanman29" date=1226624002][quote author="graphrix" date=1226621063][quote author="usctrojanman29" date=1226617505]I sold off my 4 QQQQ puts and 2 Dow puts at round 7am because it looks like they are gonna try to rally this thing today. If I miss more gains today and tomorrow, oh well...I'm traveling and I wanted to book profit on both trades.</blockquote>


Looks like you and I are in the same boat... the boat that sold too early. The BAC puts I would be up big right now, and your puts would be headed higher. Oh well, I would rather make a little money than lose any money. 8200 is the support level for the DOW, it has been getting close to breaking it, the trend is showing that it could, and if it does... look out below.</blockquote>
Yup, I already learned the hard way not to be too greedy. My grandfather also used to tell me..."the greedy lose twice." Plus I didn't feel comfy about not being able to trade starting at 10am until Monday because you and I both know the market can rally 10% in one day. Remember too, tomorrow always brings new trading opportunities.</blockquote>


I'm being greedy. :P



At the same time I'm not gambling with what I can't afford to lose. I really really don't want to miss out on the party if DOW breaks 7800...there is no support level below that...maybe around 5k? I'm willing to risk 20K or so for that. At the same time I bought some Jan/Feb calls creating a weird straddle position. Mainly betting on major volatility either upwards or way downwards.
 
[quote author="skek" date=1226634194]OK, hypothetically, is there a play on GM? It's bopping along at historic lows, bouncing between 2.90 and 3.10 for the most part, awaiting on word of a bailout. Seems like if there is a bailout that leaves equity unharmed, the stock will rise. If Congress announces no bailout, stock will tank. But because it's so cheap, the options are pretty expensive relative to the stock (about $1 for Dec puts/calls at $3 per share). Any of the pros have a suggestion for how one might play anticipated movement in GM?



I'm sure I'm looking at it wrong, so feel free to critique.</blockquote>


Skek. Don't touch GM period. There is no play. Here is why...



Bailout doesn't happen....stock goes to 0.

Bailout happens..govt takes control of your shares and they determine what price they want to buy at. You lose. This idea that if they get a bailout that GM will skyrocket is wrong.



Only way GM is good here is if they get a pure loan from the govt without them buying in a stake (which i doubt) and some how they recover. Personally, GM is dead. If govt gives them money...they just prolong their death. I want to see a new business model from GM before I touch them.

GM can go from 3 to lets say 5...but its all speculation and there are too many negatives that can happen to prevent it. If you buy it, gear yourself that you can loose it all.



Look at AIG...and the F n Fs. They got a bailout and govt took a steak in them and said they will buy it for X dollars a share. Both stocks fell from their current level.



As far as options...extremelly expensive. 33% of share price is very high. Cisco for example is trading 1 dollar to 17 for the price of stock.
 
[quote author="skek" date=1226635259]Thanks. Wasn't sure if there was a play there or not. I didn't see one, and you've confirmed that. Interesting that you don't think a bailout that preserves the equity is going to move the stock. Maybe not a lot in absolute terms, but I can see it going from 3 to 4 -- that's a nice return, right? But you are saying that any movement of that type is just speculation. Fair 'nuff. Thanks for the response.</blockquote>


Right. It can move...but you're just speculating. All I know is that during the biggest credit bubble when everybody was buying everything GM and Ford suffered as Honda and Toyota ate away at their market share. Why would anybody buy their cars in bad times? Also, even if they do turn things around and build "quality" cars. It will take years and years to change peoples perception that their cars are solid.
 
I wouldn't advise it, but if I were to play GM, it would be the bonds, not the common stock. But the risk/reward on this is just too skewed. Opportunities are easier to make up than losses.
 
[quote author="skek" date=1226634194]OK, hypothetically, is there a play on GM? It's bopping along at historic lows, bouncing between 2.90 and 3.10 for the most part, awaiting on word of a bailout. Seems like if there is a bailout that leaves equity unharmed, the stock will rise. If Congress announces no bailout, stock will tank. But because it's so cheap, the options are pretty expensive relative to the stock (about $1 for Dec puts/calls at $3 per share). Any of the pros have a suggestion for how one might play anticipated movement in GM?



I'm sure I'm looking at it wrong, so feel free to critique.</blockquote>


Short the bonds.
 
[quote author="blackvault_cm" date=1226628948][quote author="usctrojanman29" date=1226624002][quote author="graphrix" date=1226621063][quote author="usctrojanman29" date=1226617505]I sold off my 4 QQQQ puts and 2 Dow puts at round 7am because it looks like they are gonna try to rally this thing today. If I miss more gains today and tomorrow, oh well...I'm traveling and I wanted to book profit on both trades.</blockquote>


Looks like you and I are in the same boat... the boat that sold too early. The BAC puts I would be up big right now, and your puts would be headed higher. Oh well, I would rather make a little money than lose any money. 8200 is the support level for the DOW, it has been getting close to breaking it, the trend is showing that it could, and if it does... look out below.</blockquote>
Yup, I already learned the hard way not to be too greedy. My grandfather also used to tell me..."the greedy lose twice." Plus I didn't feel comfy about not being able to trade starting at 10am until Monday because you and I both know the market can rally 10% in one day. Remember too, tomorrow always brings new trading opportunities.</blockquote>


I'm being greedy. :P



At the same time I'm not gambling with what I can't afford to lose. I really really don't want to miss out on the party if DOW breaks 7800...there is no support level below that...maybe around 5k? I'm willing to risk 20K or so for that. At the same time I bought some Jan/Feb calls creating a weird straddle position. Mainly betting on major volatility either upwards or way downwards.</blockquote>


Well I guess betting on volatility paid off. However, there is a much more important tell here on this rally.

Look at the financial stocks....Market went up 500 pts but financials only gained back what they lost to begin with for the day. They didn't participate in the rally.



Meaning financials should continue to go down as they were flat today on a 500pt rally. Strong points were commodities in general led by XOM and MT, also construction as well as staples. Oh and lets not forget biotech/pharma. Big day for them.



I sold my Jan/Feb calls (which pretty much offset my gains in puts) and bought more puts on financial stocks to cost average.
 
[quote author="WestparkRenter" date=1226639291]Why did the stock market go up today?</blockquote>


Obama's family bought a new dog. Consumer confidence soared... ;)
 
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