The Spectacular Collapse of Amrep (AXR)
I wrote about AXR, #1 on the IBD 100 list, a short time ago and compared it to Empire Resources (ERS), a former #1 on the list. I predicted a collapse and that is exactly what we got today, with Amrep dropping by 22%.
The volume on the Nasdaq was lower than on Friday so we didn't pick up another distribution day. Nevertheless, the price destruction of AXR was the final piece of my market top puzzle, with US Global Investors (GROW) having already tanked. I therefore sold out another long position, AllianceBernstein (AB), with a nice 23% gain. (I got out of my IMKTA and HRZ position last Friday.)
So what do I have left? I'm still holding those QID shares I bought at last Thursday's open and a small core position in FTK. This makes 90% short right now. I plan on adding to that QID position after the first short covering rally.
I'm also thinking about shorting AMK at the first short covering rally, which should be huge since the short interest increased this last month to 84%.
Damn, this stock market stuff is sure fascinating!
The volume on the Nasdaq was lower than on Friday so we didn't pick up another distribution day. Nevertheless, the price destruction of AXR was the final piece of my market top puzzle, with US Global Investors (GROW) having already tanked. I therefore sold out another long position, AllianceBernstein (AB), with a nice 23% gain. (I got out of my IMKTA and HRZ position last Friday.)
So what do I have left? I'm still holding those QID shares I bought at last Thursday's open and a small core position in FTK. This makes 90% short right now. I plan on adding to that QID position after the first short covering rally.
I'm also thinking about shorting AMK at the first short covering rally, which should be huge since the short interest increased this last month to 84%.
Damn, this stock market stuff is sure fascinating!
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