Thursday, June 21, 2007

Hoku Scientific, Inc. (Public, NASDAQ:HOKU) Short Squeeze Spans Two Long-term Pivot Points

The first chart is the 5 min. timeframe of HOKU. Before entering long, I wanted to make sure that the long-term pivot point from the monthly chart below was secured. After much chopping around I decided to exit at the 38% extension because I didn't like all these red doji sticks.


Monthly chart identifies pivot points.


When I checked back on HOKU later in the day, I noticed it had taken out the morning swing high on big volume. I realized it was going to make its way to the next level PP. I waited patiently as it consolidated and decided to re-enter on a dummy B&B. By the end of the day, HOKU came within pennies of tagging the upper PP.

As Bigfish noted in the NVDA comments, there are no shares available to short so this a short squeeze. Keep it on the watchlist as I have a feeling we're not done yet.

3 comments:

Anonymous said...

Jamie,
I've been following your excellent blog for a month or so now and want to thank you for all the work you must put into it. I am learning a lot!
Re the Bigfish comment, that just means, imho, that there are no HOKU shares available to short "at his particular brokerage." Oftentimes different brokerages will have plenty of shares to short of a stock that some other brokerages, for various reasons, do not have available.
Best regards,
JL

Jamie said...

JL,

Welcome to the blog and appreciate your comment. I still think the HOKU move is partially fueled by a short squeeze as it appreciated 38% in one day and 100% in less than 2 weeks :)

Bigfish said...

Jamie, thanks for the mention of my post and to what it could possibly mean for our benefit. Appreciate it! All help is great. And definately still keeping a very watchful eye, as I agree with what you are suggesting(it moved a great deal of distance for some reason in a very short deal of time).

JL: you are correct, I did not check any other brokers other than who I use. Alot of times(if you are interested in still trying to obtain short positions when your own broker claims "no available shares to short") you can try at a later time, or price advances a little higher, or even contact your broker...sometimes you will get your order filled. Thanks for bringing that up also, cuz I did fail to make that obvious.
Bigfish