Well, we made some very fast money on ABK (Ambac Financial)…those 80% gains overnight weren’t too shabby!
As for ABK, being a small cap stock these days and generating a lot of interest among retail traders, I go to the message boards to see how much buzz there is…
Yesterday, this one had a Chatter Index Score of 99.88….extremely high! (100 is perfect).
Well, today, ABK had a Chatter Score of 99.92–even Hotter than yesterday. When Chat Scores are high or still climbing, I find it makes sense NOT to short.
However, as soon as the score begins to cool off, then shorting begins to make sense…esepcially once the score begins to dip under 95.0.
Since this scoring system is my own device (it can’t be found anywhere else but here!), I’ll try and let you know when I see it starting to dip.
Otherwise, those looking to find the short entry should watch my daily chart on ABK…which works thru the intra-day activity…watch for when RSI(2) and StochRSI begin to drop out of the overbought zones…that will also be your cue to go short, at least for the short term.