Tim Sykes' VRMLQ trade, Dec 30, 2009

Tim's previous VRMLQ trades were long trades joining well established rallies after they became well established. This trade is no exception. According to the data on Tim's site, the stock was bought at $26.50, sold at $27.60. Most likely the stock was bought the previous day. With the benefit of hindsight, this looks more like a multi-day short opportunity. My feeling so far is that instances of stocks going Supernova are impressive but rare, while corrections after spikes are commonplace.

Tim Sykes' VRMLQ trade, Nov 13, 2009

On Thursday morning, Nov 12, VRMLQ announced a patent news, triggering a rally. It's very interesting that, according to the buy and sell figures reported on his site, Tim entered the rally after or near the technical break-out at $21.50 (sold next day at $22.97). Therefore this looks like a technical long trade in a news-driven context -- unlike his recent EOPI trades which were purely fundamental shorts while technical context was ignored. The balance of technical and fundamental vis-à-vis long and short in this market is a food for thought.

Tim Sykes' VRMLQ trade, Oct 16, 2009

The trade is listed on Tim's site with the "buy" at $16.79 and "sell" at $18.65. Stock's day's Range on Oct 16 according to Yahoo! was 17.30 - 19.29; so the entry point must have been Oct 15. Apparently the stock's opening with a gap on Oct 15 served as a buy signal. Volume on the contrary seems not particularly informative.

You need logarithmic scale to see the levels from which the stock rose in a matter of a few weeks:



Sure enough on Sept 11 I would call this stock a Supernova candidate, but its dynamics so far is very robust -- looks more robust and sustainable than most Supernova candidates. So far this is the first Supernova-like stock discussed in this blog where after the day of the initial explosion, the stock gapped up on the next trading day. Typically they pull back next day.